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Latvia

Exit from Rail Baltica project looms due to financing problems

Latvia is facing a possible exit from the Rail Baltica project as the country is struggling to provide the required €9 million by 30th January 2025. This sum is needed to cover administrative, project-related, and design costs. If the money is not made available in time, the project organiser responsible for implementation, RB Rail, will suspend work, which would also affect the sub-projects in Estonia and Lithuania. The suspension would last at least one month. Priority tasks such as the construction of the European main line, work at Riga Airport and the central railway station, as well as the integration of military mobility hubs would be affected. Latvia had already failed to pay €1 million into the joint project fund in 2024, which led to payments with Estonian and Lithuanian funds. There is also the threat of legal consequences and repayments to the EU if Latvia does not fulfil its obligations. Such a withdrawal could further delay the completion of Rail Baltica in Latvia.