EIB completes €290 million financing package for Lithuania’s military base in Rūdninkai

• EIB finalises financing totalling €290 million for key defence site in Lithuania
• Three loans signed to construct military base in southeastern Rūdninkai area
• Support highlights growing EIB role in EU security and defence projects

The European Investment Bank (EIB) has completed a €290 million financing package for Lithuania’s planned military base in the southeastern area of Rūdninkai, marking a major step in the delivery of one of the largest defence-infrastructure projects in the Baltic region.

The financing was finalised through agreements covering all three principal sections of work on “Rūdninkai Military Town”, which will serve as a North Atlantic Treaty Organization (NATO) facility. The accords reinforce the timetable for constructing the military infrastructure, which is due to become operational at the end of 2027.

A couple of weeks ago, the EIB signed a €105 million loan, including a €5 million reserve facility, with a special purpose vehicle developing Lot A of the military town. The project company is backed by a consortium comprising Lithuanian construction companies Conres and Fegda and alternative asset manager INVL Asset Management (INVL). The EIB today signed two loans totalling around €185 million with a pair of special purpose vehicles that are responsible for Lots B and C and are backed by Baltic construction company Merko.

"Rūdninkai is an extremely important defence-infrastructure project for Europe,” said EIB Vice-President Karl Nehammer. “We are proud to provide financing that will strengthen NATO's eastern flank. It demonstrates how Europe is investing in the security, resilience and readiness needed to meet today's challenges.”

The financing underscores the EIB’s growing role in supporting European security and defence. The EIB has significantly increased financing for dual-use and defence-related infrastructure projects as the European Union strengthens its security capabilities and strategic resilience.

The Rūdninkai project is among the biggest defence-infrastructure investments in Lithuania since it regained independence in 1991.

“The EIB’s financing of the Rūdninkai military town marks an important milestone for one of Lithuania’s most significant military infrastructure projects,” said Lithuanian Minister of National Defence Robertas Kaunas. “The investment will accelerate the delivery of infrastructure for the German brigade, strengthen Lithuania’s defence capabilities, contribute to NATO’s eastern flank security and demonstrate Europe’s shared commitment to security.”

Located near the strategically important Suwałki Gap, the military town will host a German brigade of around 4,000 troops as well as 750 civilian personnel.

The German commitment represents the country's first permanent military deployment abroad since the Second World War, making the project a strategic priority for both Berlin and its NATO partners.

The project will span 170 hectares, lay out 11 kilometres of roads and feature around 150 buildings including medical centres, residential units, training facilities, warehouses, hangars and helipads.

"This project is an example of how public sector needs, private capital and international financial institutions are coming together for a higher purpose – the security of the state and the region,” said INVL Chief Executive Officer Andrius Načajus. “The completion of the financing stage allows our consortium partners Conres and Fegda to move on to the next important step: the timely and high-quality development of the infrastructure needed for the permanent presence of the German brigade in Lithuania."

Under the EIB financing agreements, construction of Lots A, B and C will proceed in parallel.

“This agreement with the European Investment Bank (EIB) enables us to commence construction of the second phase of the Rūdninkai military town,” said Saulius Putrimas, Head of Merko in Lithuania. “We appreciate the EIB’s trust and contribution to the implementation of this project. The Merko team is fully prepared to deliver it, recognising its significance for Lithuania’s defence capabilities and national security.”

Background information

EIB Group   

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

INVL Asset Management (INVL)

INVL is the leading alternative asset manager in the Baltics. We are part of the Invalda INVL Group, which has been operating for over 30 years. The Group has an open approach, grows and develops, and creates well-being for people through its activities. The EUR 2.1 billion of assets managed or supervised by our group include investments in private equity, forestry and agricultural land, renewable energy, real estate, and private debt. The group's activities also encompass family office services in Lithuania, Latvia, and Estonia, the management of pension funds in Latvia, and investments in global third-party funds. Shares of Invalda INVL have been traded on the Nasdaq Vilnius stock exchange since 1995.

UAB Merko statyba is a recognised Lithuanian construction company, which offers construction services in the fields of general construction, civil engineering and residential construction. UAB Merko statyba represents the Merko Ehitus group in Lithuania. Group companies operate in Estonia, Latvia and Lithuania.