Germany’s Baltic footprint expands as Lithuania builds strategic base

Lithuania will officially launch construction of the second phase of the Rūdninkai military campus, advancing a 1.3 billion euro project that will host Germany’s planned permanent brigade deployment in the Baltic country.

The second phase of the development, located in the Šalčininkai district near Lithuania’s border with Belarus, is being carried out under public-private partnership agreements, LRT reports.

A consortium operating under the name Rudina, managed by Conres, INVL Asset Management and Fegda, was awarded one section of the project in January. Estonian-owned construction company Merko Statyba secured contracts for the remaining two sections.

Under 15-year public-private partnership agreements covering construction and maintenance, Rudina will receive 487.61 million euros, including value-added tax, while Merko Statyba will receive 393.25 million euros and 453.5 million euros for its two contracts. Payments will begin after construction is completed.

The contracts entered into force in recent weeks.

Rudina has secured 200.75 million euros in financing from the European Investment Bank and Swedbank. Merko Statyba has obtained 369 million euros in loans from the European Investment Bank, SEB and Swedbank.

Earlier this month, Merko Statyba announced it had transferred a 70% stake in two project companies established for the development to Dutch investment company ELL Real Estate Holding.

According to Lithuania’s Ministry of Defence, the second phase will include barracks, vehicle garages, maintenance workshops, dining facilities, warehouses, headquarters buildings, fuel stations and parade grounds.

The project also includes military training facilities, some of which will be equipped with advanced simulation systems.

The Rūdninkai military campus will cover about 190 hectares and is a key part of Lithuania’s preparations to host a German brigade on a permanent basis by the end of 2027, as NATO strengthens its eastern flank following Russia’s full-scale invasion of Ukraine.

By Vafa Guliyeva