BNN IN FOCUS | If Latvia fails to deliver: Rail Baltica sanctions threaten all three Baltic States

If the full Rail Baltica line is not completed by 2030, financial sanctions will be imposed on all three participating Baltic States — Latvia, Lithuania, and Estonia — according to discussions this week in Estonia’s Anti-Corruption Committee, as reported by Estonian public broadcaster ERR. Latvia’s Ministry of Transport confirmed this information to BNN.

Amid rising concerns that Latvia may fail to complete its section of the Rail Baltica route on time, Estonian politician and committee chair Anastassia Kovalenko-Kõlvart expressed doubts about continuing large-scale investments.

“Estonia is currently in a situation where we’re spending billions on building the railway and another 70 million euros to buy trains that will run between Tallinn and Häädemeeste. Annual subsidies alone will cost another 50 million euros. Meanwhile, our roads are in poor condition, and we no longer even talk about four-lane highways — but we’re prepared to pour billions into a railway that, at best, reaches only the Latvian border,” she stated. In her view, Estonia should consider slowing down its commitments.

Andris Kulbergs (AS), chairman of Latvia’s Rail Baltica parliamentary inquiry commission, emphasized during the committee meeting: “We have an agreement. All three — Estonia, Latvia, and Lithuania — are in the same boat. If one fails to fulfill one’s obligations, we all bear the costs. Sanctions have to be paid even on behalf of another country.”

Responding to a question from BNN on whether delays in one country could trigger financial penalties for all three, the Latvian Ministry of Transport confirmed this is the case.

The ministry’s public relations specialist Iveta Kamarūte stated: “Under the Connecting Europe Facility (CEF) Grant Agreement signed between the European Climate, Infrastructure and Environment Executive Agency (CINEA) and the three Baltic transport ministries — listed as beneficiaries — a provision for joint liability is included. This means all three countries are collectively responsible for fulfilling the agreement.”

She added that all three countries have agreed on 2030 as the target year for completing the main line and are actively working toward this goal. At present, there are no ongoing discussions on specific sanctions or compensation mechanisms.

Similarly, Rail Baltic Estonia CEO Anvar Salomets stressed: “No official confirmation has been given that Latvia will not be ready by 2030.”