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Latvia, Estonia want to sign Rail Baltica agreement but Lithuania in no rush
© E.Digrytės nuotr.

While the Latvian and Estonian Prime Ministers want to move ahead and sign a tripartite agreement between the Baltic countries‘ governments on the European Rail Baltica project as soon as possible, the Lithuanian government said it is no rush to do so.

Lithuanian Communications Minister Rimantas Sinkevičius said that it is better to seal a deal later and have a good quality agreement.

Sinkevičius said the main obstacle to the agreement is the distribution of VAT between the parties for the work carried out and the appointment of the board for the joint venture.

Lithuania would accept that work contracts would be awarded by the joint venture company, but wants to see the VAT remain in the country where the works are done.

The project is expected to receive European Union funding for the estimated €5 billion investment needed for the track going through Poland and the Baltic States.

LRT

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