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May 12, 2020
The Three Seas Initiative
The Three Seas Initiative (3SI) is a regional effort in
economically compared with the rest of the EU; the 3SI
Europe to expand cross-border energy, transportation, and
countries comprise just under 30% of EU territory and 22%
digital infrastructure and boost economic development in
of its population but account for 10% of the EU’s gross
the area between the Adriatic Sea, Baltic Sea, and Black
domestic product (the EU data predate Brexit and so
Sea. Twelve countries (Austria, Bulgaria, Croatia, the
include the United Kingdom). Infrastructure gaps are
Czech Republic, Estonia, Hungary, Latvia, Lithuania,
considered to be a factor behind regional economic
Poland, Romania, Slovakia, and Slovenia), all of which are
disparities. According to EU data, road and rail travel in the
members of the European Union (EU), participate in the
3SI region take, on average, roughly two to four times
3SI (see Figure 1).
longer than comparable travel in the rest of the EU.
The U.S. government, as well as some Members of
Figure 1. Three Seas Initiative
Congress, have indicated strong backing for the 3SI. In
October 2019, a resolution was introduced in the House of
Representatives “expressing support of the Three Seas
Initiative in its efforts to increase energy independence and
infrastructure connectivity thereby strengthening the United
States and European national security” (H.Res. 672). In
February 2020, U.S. Secretary of State Mike Pompeo
announced a U.S. commitment of up to $1 billion in
financing for 3SI countries to promote energy security and
economic growth.
Initiative Overview
The Three Seas Initiative was launched in 2015 by the
presidents of Croatia and Poland, and the first annual
summit was held in 2016. The 3SI is structured as a flexible
platform for generating funding and promoting deeper
cooperation among its participating countries; one
overarching goal is to develop a north-south infrastructure
corridor in the region. In part as a legacy of the Soviet
Union’s Cold War-era dominance over most of the region,
east-west infrastructure remains considerably more
developed than north-south linkages. Particularly with
regard to energy security, the dominance of east-west
pipelines and limited alternatives to them have been factors
Source: Map created by CRS.
in continuing energy dependence on Russia. The United
States and the 3SI countries frequently have expressed
High-level officials from the United States (including
concern over Russia’s energy supply dominance in the
President Trump in 2017), the EU, and other EU member
region. Such concerns have been enhanced by Nord Stream
states such as Germany have joined annual 3SI summits to
2 and TurkStream, pipeline projects that would expand
express their support as interested partners. The next
Russia’s capacity to deliver natural gas to Europe. Many
summit is scheduled to be held in Tallinn, Estonia, in
observers consider the expansion of energy infrastructure
October 2020 and is expected to focus on digital
(including liquefied natural gas [LNG] terminals) to be key
transformation and infrastructure.
to opening up new routes for alternative suppliers.
Supporters also view the 3SI as a potential counterbalance
Priority Projects and Financing
to China’s interest in participating in regional infrastructure
Mechanisms
projects as part of its global Belt and Road Initiative.
At the 2018 summit, the 3SI countries developed a list of 48
priority interconnection projects spanning the energy,
Another main objective of the 3SI is to stimulate economic
transportation, and digital sectors (see Table 1).
development and level regional disparities within the EU.
According to EU data, the 3SI region remains less well-off
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The Three Seas Initiative
Table 1. Three Seas Initiative Priority Project Examples (by Sector)
Energy
A prospective LNG terminal in Krk, Croatia, with a connecting pipeline through Hungary and Slovakia
The Gas Interconnection Poland-Lithuania (GIPL), a pipeline that would connect Lithuania, Latvia, and Estonia to the wider
European gas network
The Bulgaria-Romania-Hungary-Austria (BRUA) pipeline, which would supply Romanian Black Sea gas to the region
Transportation
The completion of Trans-European Transport Network (TEN-T) north-south road and railway corridors that would connect the
Baltic (Poland) with the Adriatic (Slovenia and Italy) and with Greece via the Western Balkans
Viking Train, a railway to connect the Baltic Sea to the Black Sea, via Lithuania, Belarus, and Ukraine
FAIRway Danube, a project to improve infrastructure and navigation conditions for water traffic on the Danube River in Romania,
Bulgaria, Croatia, Hungary, and Slovakia
Digital
The Three Seas Digital Highway, a series of projects to improve data transfer and enhance communications infrastructure,
including 5G technology and fiber optics
3SI Marketplace, seeking to boost trade and investment in the region by connecting small- and medium-sized enterprises (SMEs)
to investment capital
The SmartCity Forum, seeking to accelerate innovation and foster investment in innovation in regional cities
Source: Three Seas Initiative Summit Bucharest, September 17-18, 2018, Three Seas Initiative Priority Interconnection Projects.
Notes: The table includes proposed projects as well as in-progress projects.
The Three Seas Initiative Investment Fund, a mechanism
for EU Natural Gas Diversification, coordinated by
intended to draw in private-sector financial support, was
Michael Ratner.
launched in 2019 with an initial commitment of €500
million (about $542 million) from development banks in
Members of Congress also may be interested in U.S.
Poland and Romania. Estonia joined the fund in early 2020,
funding in support of 3SI. Secretary Pompeo’s February
and other 3SI countries have expressed interest.
2020 announcement that the United States would commit
up to $1 billion in 3SI-related support indicated that the
The EU is a source of significant financial support for
financing would take place through the International
member state connectivity projects and other regional
Development Finance Corporation (DFC). For additional
development initiatives. According to EU data, more than
information about the DFC and related legislation, see CRS
€150 billion (about $163 billion) in regional development
Report R45461, BUILD Act: Frequently Asked Questions
and cohesion funds was allocated to the 3SI countries under
About the New U.S. International Development Finance
the EU’s 2014-2020 budget framework; over one-third of
Corporation, by Shayerah Ilias Akhtar and Marian L.
this amount was for investments in transport, energy, and
Lawson, and CRS In Focus IF11436, U.S. International
digital connectivity projects. Many of the 3SI priority
Development Finance Corporation (DFC), by Shayerah
projects have been approved for partial financial support
Ilias Akhtar and Nick M. Brown.
from various EU funds or for loans from the European
Investment Bank. The Connecting Europe Facility (CEF), a
Some Members of Congress have demonstrated strong
€30 billion (about $32.5 billion) EU funding instrument,
support for efforts to deter potential Russian aggression and
shares the 3SI’s emphasis on strategic investments in large-
perceived malign influence in Europe, including by
scale transport, energy, and digital infrastructure networks.
supporting funding to the U.S. European Deterrence
According to EU data, as of 2018, over 90% of CEF
Initiative (EDI). Some Members of Congress also have
funding for natural gas projects went to the 3SI countries.
expressed increasing concern over strategic competition
with China in Europe and may have an interest in potential
Issues for Congress
avenues to counterbalance the influence of China’s
The objectives of the Three Seas Initiative appear to align
financial investments and diplomatic engagement in the
with a number of broad U.S. security and economic goals
region. In the context of these broad strategic concerns,
that have received congressional interest and support. In
Members of Congress may be interested in U.S.
recent years, some Members of Congress have
involvement with the 3SI as a complement to the United
demonstrated a growing interest in European energy
States’ already extensive diplomatic, security, and
security and sought to encourage reduced energy reliance
economic cooperation with the countries of central and
on Russia, including by promoting U.S. LNG exports. The
eastern Europe.
Further Consolidated Approipriations Act, 2020 (P.L. 116-
94), includes the European Energy Security and
Sarah E. Garding, Analyst in Balkan and Southeast
Diversification Act of 2019 (Division P, Title XX) and the
Europe Affairs
Eastern Mediterranean Security and Energy Partnership Act
Derek E. Mix, Specialist in European Affairs
of 2019 (Division J, Title II). For further information, see
CRS Report R42405, European Energy Security: Options
IF11547
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The Three Seas Initiative
Disclaimer
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https://crsreports.congress.gov | IF11547 · VERSION 1 · NEW