24.10.2025
The European Union has signed a new financing agreement worth 295,5 million euros to accelerate the construction of Rail Baltica — the largest railway infrastructure project ever undertaken in the Baltic States.
The signing of the grant took place in Vilnius on 21-22 October during a high-level meeting between representatives of the European Climate, Infrastructure and Environment Executive Agency (CINEA) and Rail Baltica, where the progress of the works to date was assessed and the next steps were planned.
"The continued support from CINEA will allow us to maintain the pace of construction of the Rail Baltica main line. With this funding, we can move forward with the development of key sections in all three countries," said Marko Kivila, Chairman of the Board and CEO of RB Rail AS.
Europe's investment in the future
The funding comes from the Connecting Europe Facility (CEF), the EU's main instrument for developing transcontinental transport networks. The support is divided between three countries: EUR 47,1 million for Estonia, EUR 153,5 million for Latvia and EUR 94,9 million for Lithuania, including a share from RB Rail AS for project-wide coordination.
Rail Baltica, with a total length of 870 kilometers, will start connecting Tallinn, Riga, Kaunas and Warsaw in 2030, linking the Baltic states to the European standard gauge railway network for the first time in history. The project will become an important strategic axis not only for freight transport and travel, but also for the region's energy security and defense capabilities.
Work in full swing in three countries
In Estonia, construction of the main line between Tallinn and the Estonian-Latvian border continues. The new support includes, among other things, the construction of a 10,2-kilometer section between Rapla and Pärnu.
In Latvia, construction has accelerated on four southern sections, totaling 13,3 kilometers. The works include embankments, access roads, drainage systems and civil engineering structures. At the same time, technical design of the Rail Baltica electrification project continues, which will make the entire route carbon neutral in the future.
In Lithuania, the focus is on the Kaunas urban hub, where viaducts and railway crossings will be built. In addition, the funding will cover design work on the section between Kaunas and the Lithuanian-Polish border and the land acquisition process. In Lithuania, a new bridge over the Neris River is also being built, which will be the longest railway bridge in the country.
A project that unites three countries and three centuries
Rail Baltica combines Europe's 21st-century green revolution, 20th-century geopolitics and the 19th-century dream of a common railway. Hundreds of kilometres of main line, viaducts and stations are currently under construction in the three countries. In Estonia, work is underway on the Ülemiste terminal; in Latvia, there is a priority section around Iecava; in Lithuania, the Kaunas–Panevėžys route is progressing.
By the end of 2025, 43 percent of the Rail Baltica main line will be ready for construction. This marks a significant milestone in the history of Europe's most ambitious cross-border railway project.
“Effective cooperation and transparent reporting between RB Rail, CINEA and national partners is key to maintaining trust and keeping the project on track,” said Ojārs Daugavietis, Member of the Board and CFO of RB Rail AS.
A common goal: keeping the train on the European course
Participants at the meeting in Vilnius also visited the Rail Baltica construction site at the Neris Bridge, where construction of an 8,8-kilometer double-track section is progressing.
The next CINEA progress visit will take place in Latvia in November 2025, when the project's progress will be assessed again across the region.
Rail Baltica is not just a new railway – it is a political and economic route that will draw the Baltic states closer to the heart of Europe, both physically and symbolically.
The article was first published on October 23, 2025 as a content marketing story in Õhtuleht.
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