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EIB funding strengthens NATO’s Baltic defense posture

The Baltics Materials 20 June 2025 16:28 (UTC +04:00)
EIB funding strengthens NATO’s Baltic defense posture
Daspina Hasanova
Daspina Hasanova
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BAKU, Azerbaijan, June 20. The European Investment Bank (EIB) has approved a landmark 540 million euro loan to support the construction of a new military base in Rūdninkai, Lithuania, underscoring Europe’s commitment to strengthening defense infrastructure and regional security, Trend reports.

The base, nestled just south of the capital Vilnius, will roll out the red carpet for the German 45th Panzer Brigade, bolstering NATO’s rapid-response capabilities in the Baltic region.

The ball is set to roll on the construction of the Rūdninkai site in 2026, covering a hefty 170 hectares in total. The facility will boast 11 kilometers of roads and approximately 150 buildings, featuring medical centers, residential quarters, training facilities, warehouses, aircraft hangars, and helipads.

“This is a landmark step in how we support Europe’s security. By financing large-scale military infrastructure, we’re demonstrating our readiness to meet the region’s evolving defense needs. It reflects the EIB’s growing role in safeguarding stability across the European Union,” said EIB Group President Nadia Calviño during a meeting in Luxembourg with Lithuanian Finance Minister Rimantas Šadžius.

Strategically located 35 kilometers from the Belarusian border, Rūdninkai lies near the Suwałki Gap—a narrow corridor between Belarus and Russia’s Kaliningrad exclave, representing the only land bridge between the Baltic states and the rest of NATO and the EU. The new base will play a pivotal role in securing this vital connection.

The EIB’s involvement is part of its expanded mandate to support security and defense initiatives that align with EU objectives on crisis management and preparedness. The financing will be extended to private partners selected by the Lithuanian Ministry of Defense under a public-private partnership (PPP) framework.

“I greatly appreciate the invaluable expertise and financial support from the EIB in implementing the Rūdninkai project. This not only strengthens Lithuania’s defense capabilities but also contributes to long-term fiscal sustainability through innovative financing,” said Finance Minister Šadžius.

“This investment marks a historic milestone for Lithuania’s national security and NATO’s collective defense. The Rūdninkai base will be the permanent home of the German brigade—a cornerstone of deterrence in the region. The EIB’s support sends a clear message: European resilience is built on shared responsibility,” explained Minister of National Defense Dovilė Šakalienė.

The installation is projected to host 4,000 Bundeswehr personnel and 750 non-military staff, signifying Germany's inaugural enduring overseas stationing of a brigade-level contingent post-World War II. The 45th Panzer Brigade, colloquially referred to as the Lithuania Brigade, was formally instantiated in April 2025 under the auspices of the German Armed Forces (Bundeswehr).

The EIB’s engagement will not merely alleviate the fiscal pressures on Lithuania but will also encompass consultative services to guarantee that the PPP agreements align with global benchmarks and embody sectoral best practices.

Anticipated legal and fiscal deliberations are projected to reach a conclusive resolution in the forthcoming months, subsequent to the formal endorsement by the EIB Board of Directors on June 19, 2025.

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