Lithuania: EIB to advise on development of military base for NATO troops

• EIB and Lithuanian government to collaborate over development of Rūdninkai military base near border with Belarus.
• EIB to provide advisory services to ensure project’s public-private-partnership agreements meet market standards.
• Planned military base aims to enhance NATO and national defence capabilities.

The European Investment Bank (EIB) is teaming up with the Lithuanian government to support the development in Lithuania of the Rūdninkai military base, a key project to enhance North Atlantic Treaty Organization (NATO) operations and regional security. Under an accord signed today in Vilnius, the EIB will provide advisory services to ensure that public-private partnership (PPP) agreements linked to the planned base near the border with Belarus meet market standards and follow best practices.

The Ministry of National Defence of the Republic of Lithuania plans three PPP agreements to establish the military site in Rūdninkai, which is located about 23 kilometres south of Vilnius and will support the deployment of a German military brigade under NATO. The base will accommodate up to 4,000 troops and civilians, including infrastructure for the Lithuanian Armed Forces to service the German brigade, which will consist of up to 500 personnel.

Construction of the Rūdninkai base is planned to start in 2026, and the base is expected to be operational at the beginning of 2028.

The advisory accord is part of the EIB’s recently expanded commitment to security and defence, broadening its scope to include military investments that align with the European Union’s goals of bolstering preparedness and crisis management. Additionally, the EIB is assessing potential project financing for the military base, which is expected to cost around €1.2 billion.

"The EIB's unwavering commitment to Europe's security and defence is exemplified through our advisory support for the Rūdninkai military base," said EIB Vice-President Thomas Östros. "By ensuring this project is well structured and financially viable, we aim to strengthen Europe's defence infrastructure and stimulate economic growth."

The EIB will provide advisory support for the review of draft agreements to ensure that they meet international standards and are attractive for bank financing. These advisory services will also be provided at all stages of the procurement process. 

"This agreement with the EIB provides more opportunities for businesses to participate in the development of our military infrastructure in Rūdninkai,” said Minister of National Defence Dovilė Šakalienė. ”It is a priority project of our ministry, and its swift implementation will enable the timely and full deployment of the German brigade in Lithuania.“

“The project of the Rūdninkai military base is a very important step in increasing Lithuania’s resilience to external threats, but also a significant challenge for our country, both financial and technical, “stated Minister of Finance Rimantas Šadžius. “I am pleased that from the very first stages of the project we have reliable partners on whom we can rely. We are already seeing the first results of financial diplomacy and we can confidently state that the EIB's involvement will give this project even greater momentum. Moreover, the project will contribute to minimising the risk of financing a billion-value project, which is likely to reduce the state budget expenditure.”

Supporting Europe’s peace and security is a key priority for the EIB Group. In March 2025, the Board of Directors expanded financing eligibilities to include projects dedicated to purely military uses such as barracks, storage facilities, drones, helicopters, radars, satellites, advanced avionics, propulsion systems and optics, while maintaining strong financing capacity and a robust position in global capital markets.

The EIB Group expects a pipeline of defence projects – including funding for the planned Rūdninkai base – to be approved in the coming months.

Background information

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The EIB Group’s financing in Lithuania last year amounted to €449 million, spurring business investments and accelerating the country’s green transition.

All projects financed by the EIB Group are aligned with the Paris Climate Agreement, as set out in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation, and a healthier environment.    

By fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union targets cohesion regions, where income per capita is below the EU average.  

In addition to financing, the EIB offers advisory services that help public and private partners develop and implement high-quality, investment-ready projects. The European PPP Expertise Centre is an advisory initiative of the EIB and supports the public sector across Europe in delivering better public-private partnerships (PPPs).   In 2024 alone, our advisory teams helped mobilise over €200 billion of investment across Europe and beyond.

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