Rail Baltica Receives €295.5M Boost from European Union

Baltic rail project gains momentum with new funding for construction and technical work.

The Rail Baltica project, a massive undertaking to connect the Baltic states via rail, has received a significant boost. The European Union has allocated €295.5 million to the project, enabling further construction.

Key Development

According to the Ministry of Transport (SM), this considerable support from the EU will allow the construction of the main line from Lithuania to Salaspils to proceed. The funding represents the maximum amount available under the current call, while considering budgetary limitations.

Atis Švinka (Progressive Party), the Transport Minister, stated:

“The latest European Union funding will allow Latvia to move forward even faster with the construction of the southern section of the Rail Baltica main line. It is important to clearly show both the people of Latvia and our colleagues in Europe and the Baltic States that we are actively working towards a common goal – to establish a cross-border rail connection by the end of 2030. The construction of the main line in the first phase of the project is our top priority at the moment.”

—Atis Švinka, Transport Minister

Funding Breakdown

The funding will be divided among the Baltic states. Estonia is set to receive approximately €47.1 million, while Latvia will receive €153.5 million, and Lithuania will receive €94.9 million. These figures incorporate funds for the coordinator, RB Rail.

Projected Progress and Financing

RB Rail anticipates that nearly half (43%) of the Rail Baltica main line will be under construction by the close of 2025. As of now, the project has secured more than €4 billion in funding, with a significant portion contributed by the EU and its member states. Citing inflation-related cost increases, Rail Baltica is exploring additional funding options. These include public-private partnerships and the EU’s Military Mobility Fund.

Economic Impact

Rail Baltica is projected to generate €7 billion in socioeconomic benefits, including increased trade, tourism, and labor mobility within the Baltic region. (Rail Ninja)

Project Details

The project promoter, RB Rail, a Baltic joint venture, revealed that the newly allocated funds will support construction and technical activities across Estonia, Latvia, and Lithuania. These activities include building the main railway line, designing power supply systems, and coordinating the project across borders.