€295.5 million granted to further support Rail Baltica

The funding will support construction and technical implementation activities in Estonia, Latvia, and Lithuania, including development of the core railway line, power supply system design, and cross-border project coordination. Of the total amount, approximately €47.1 million is allocated to Estonia, €153.5 million to Latvia, and €94.9 million to Lithuania. The grant amounts per member state include the share allocated to the coordinator, RB Rail AS.

Magda Kopczyńska, Director-General for Mobility and Transport, European Commission: “With over 295 million euros allocated to Rail Baltica and a comparable sum invested in works on the adjacent E75 railway line in Poland, the European Commission reaffirms its ongoing commitment to integrating the Baltic states into the wider European railway network. Strengthening cross-border connectivity between the Baltic states, Poland, and other EU Member States will enhance the efficiency and safety of rail transport, while boosting economic competitiveness across the continent.”

“This funding comes at a critical moment for the Rail Baltica project,” said Marko Kivila, acting CEO and Chairman of the Management Board of RB Rail AS. “It allows us to continue construction without delays, especially in those sections where works are already underway in all three Baltic countries. We thank all Member States for their support in the vote. Given the available funding volume, we applied for those activities that are currently best prepared for implementation.”

The awarded €295.5 million represents the maximum available funding for this call in accordance with the CEF Regulation. The activities submitted for the next phase of EU funding include construction and related works in all three Baltic states. The European Commission approved funding within the available budgetary limits. During July, discussions will begin to align on the Grant Agreement scope, focusing on the elements that will remain within the current Grant Agreement framework.

The funding granted through the Connecting Europe Facility ensures the continued progress of the project. Currently, construction is underway on approximately 160 kilometers of the main railway line, while work on the implementation of railway subsystems is ongoing: the electrification procurement process has concluded and the contract is in the signing phase, whereas the procurements for control–command and signaling systems are still in progress.

By the end of 2025, around 43% of the Rail Baltica mainline is expected to be in the construction phase. To date, more than €4 billion in funding has been secured for the project, with a significant share provided by the European Union and national governments. Considering the cost increases caused by inflation, Rail Baltica is

also exploring additional funding mechanisms, including public-private partnership (PPP) models and tapping into the EU Military Mobility Fund.

Rail Baltica progress

In Estonia, contracts have been signed for the construction of the entire Rail Baltica route from Tallinn to the Latvian border. Currently, works are ongoing along a section of more than 100 kilometers between Tallinn (Ülemiste) and Tootsi. All necessary construction permits for these sections have been obtained. Additionally, the Estonian government has approved the start of preparatory works along a roughly 40-kilometer stretch in the southern part of Pärnu County. This means that planning and other necessary activities can now proceed in this area in preparation for future construction.

In Latvia, construction is ongoing at Riga Central Station and near the airport. The temporary track installation has been completed, and work on the signaling systems is underway. In spring, work resumed on the southern part of the station, with the goal of opening this section for passenger traffic by summer 2027. In the southern section of Rail Baltica in Latvia, construction has started near Iecava, where an infrastructure maintenance facility and temporary logistics centre are being built. Embankment construction, access road setup, earthworks, and installation of a temporary office are in progress. The site will also see ditch cleaning and building demolition works. This area will serve as a support hub for construction between Misa and the Lithuanian border.

In Lithuania, construction is underway on the mainline section near Jonava, where over 46 kilometers of railway embankment and related infrastructure are being built. In addition, procurements have been announced for another 68-kilometer section, including a 10-km superstructure installation planned soon. A new bridge over the Neris River is under construction. Design works on the section from Kaunas to Ramygala are nearing completion, while land acquisition is ongoing. Planning for regional stations has been completed, and preparations are underway for the next round of infrastructure procurements scheduled for 2025