The European Investment Bank (EIB) plans to lend €540 million for Lithuania to build a military base south of the capital Vilnius, highlighting Europe’s collective commitment to bolster its defence infrastructure and deterrence capacity. The new base in Rūdninkai will host a German brigade, strengthening the rapid-response capabilities of the North Atlantic Treaty Organization in the region.
Construction of the Rūdninkai military site, which will be located 35 kilometres from the border with Belarus, is due to begin in 2026. 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 is a landmark step in how we support Europe’s security,” EIB Group President Nadia Calviño said in Luxembourg where she met Lithuanian Finance Minister Rimantas Šadžius. “By financing large-scale military infrastructure, we’re demonstrating our readiness to meet the region’s evolving defence needs. It reflects the EIB’s growing role in safeguarding stability across the European Union.”
The initiative is strategically important for NATO’s eastern defence. Rūdninkai is near a narrow corridor that represents the only land route between the Baltic states and the rest of NATO as well as of the EU. The corridor, known as the Suwałki Gap, is bordered by Belarus to the southeast and Russia’s Kaliningrad exclave to the northwest.
The financing from the EIB is part of its recently expanded scope of activities in the areas of security and defence to include military investments that align with the EU’s goals of bolstering preparedness and crisis management. The approved EIB loan will be to private partners to be selected by the Lithuanian Ministry of Defence to carry out the project.
“I greatly appreciate the invaluable expertise and financial support from the EIB in implementing the Rūdninkai project that will strengthen Lithuania’s defense capabilities,” said Lithuanian Finance Minister Šadžius. “We are already seeing the results of financial diplomacy and we can confidently state that the EIB’s involvement will contribute not only to Lithuania’s debt sustainability and stronger fiscal stance but also to the security of our country.”
The EIB Board of Directors approved the €540 million loan at a meeting on 19 June in Luxembourg. The endorsement paves the way for legal and financial negotiations over the loan that are expected to be completed in the coming months.
“This investment marks a historic milestone for Lithuania’s national security and NATO’s collective defence,” said Lithuanian Minister of National Defence Dovilė Šakalienė. “The Rūdninkai military base will not only strengthen our defence posture but also serve as a permanent home for the German brigade – a cornerstone of NATO’s deterrence in the region. The EIB’s support is a clear sign that European resilience begins with shared responsibility.”
The EIB backing for the Rūdninkai military site will help spread the costs of the project, easing the burden on Lithuanian finances and on companies involved in an initiative that takes the form of a public-private partnership (PPP). The EIB is also providing advisory services to ensure that the PPP agreements meet market standards and follow best practices.
The Rūdninkai base will accommodate around 4,000 German troops and 750 civilian personnel.
In April 2025 Germany activated the 45th Panzer Brigade of the German Armed Forces (Bundeswehr), also known as the Lithuania Brigade. For Germany, it`s the first brigade-sized unit to be based abroad permanently since World War II.
The Central Project Management Agency (CPVA) is actively involved in this project. CPVA has been supporting the Ministry of National Defence from the start of the Rūdninkai project by providing legal, financial and technical expertise. Currently, the agency is also working closely with the EIB.
In addition to Rūdninkai, CPVA continues to advise on the implementation of similar PPP projects for military bases in Rokantiškės (Vilnius district), Pajūris (Šilalė district), and Šiauliai district.
This information is based on updates provided by the Ministry of National Defence.
Lithuanian MOD picture
