RB Rail AS, the joint venture coordinating the Rail Baltica project, has announced that the European Commission has awarded EUR 295.5 million in new funding through the Connecting Europe Facility (CEF) Transport call. The allocation supports a wide range of construction and implementation activities across Estonia, Latvia and Lithuania, marking another significant step forward in the delivery of the high-speed transnational railway project.
This latest CEF grant, awarded under the 2023 call within the EU’s multi-annual budget, will help accelerate the development of core railway infrastructure, as well as critical systems such as power supply and cross-border coordination. The funding is distributed as follows: approximately EUR 47.1 million for Estonia, EUR 153.5 million for Latvia, and EUR 94.9 million for Lithuania. The grant amounts include shares allocated to RB Rail AS as project coordinator.
Magda Kopczyńska, Director-General for Mobility and Transport at the European Commission, stated: “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.”
Marko Kivila, acting CEO and Chairman of the Management Board at RB Rail AS, said: “This funding comes at a critical moment for the Rail Baltica project. 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.”
He added that the application focused on activities with the highest level of readiness, in line with the available CEF funding volume. Discussions are expected to take place in July to finalise the scope of the Grant Agreement, which will define the specific activities to be covered within the current budgetary framework.
The awarded EUR 295.5 million represents the maximum available support for this CEF call, underlining the EU’s continued confidence in the cross-border project’s strategic importance. Rail Baltica is designed to improve north-south connectivity across the region and link the Baltic states more closely to the wider European network.
As of mid-2025, construction is under way on around 160 km of the main railway line, and work on major rail subsystems continues. The electrification procurement process has been concluded, with the contract now in the signing stage, while procurements for control–command and signalling systems are ongoing. By the end of 2025, around 43% of the Rail Baltica mainline is expected to be in active construction.
To date, over EUR 4 billion in funding has been secured for Rail Baltica, including substantial contributions from both the European Union and national governments. In light of inflation-related cost increases, the project is also exploring alternative financing models, including public-private partnerships (PPPs) and support from the EU Military Mobility Fund.
Progress in Estonia
In Estonia, contracts have been signed for the construction of the entire Rail Baltica corridor from Tallinn to the Latvian border. Works are ongoing on over 70 km of embankment and intersections, with activity expected to reach more than 100 km between Tallinn (Ülemiste) and Tootsi by the end of 2025. All relevant construction permits for these sections have been obtained. The government has also approved preparatory works in the southern Pärnu County, covering an additional 40 km.
Developments in Latvia
In Latvia, construction is progressing at Riga Central Station and near the airport. Temporary track installation has been completed, and signalling work is under way. Work resumed this spring on the southern section of the station, which is targeted to open for passenger traffic by summer 2027.
Elsewhere in Latvia, construction has commenced near Iecava on the southern corridor, where an infrastructure maintenance base and temporary logistics centre are being built. Supporting works such as embankment development, earthworks, access road construction and demolition activities are under way. This facility will serve as a logistics hub for work between Misa and the Lithuanian border.
Ongoing work in Lithuania
In Lithuania, construction continues near Jonava, where over 46 km of embankment and supporting infrastructure are being developed. Additional tenders have been issued for a further 68 km, including a 10-km track superstructure due to begin shortly. A new bridge over the River Neris is also under construction.
Design work is nearing completion for the section between Kaunas and Ramygala, with land acquisition in progress. Plans for regional stations are finalised, and preparations are ongoing for the next round of infrastructure procurements in 2025.
The continued development of Rail Baltica reflects its central role in enhancing European connectivity and strategic mobility. Once complete, the 870-km high-speed line will connect Tallinn to the Lithuanian-Polish border, integrating the Baltics with the broader TEN-T network and contributing to the EU’s climate and mobility goals.
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