When the supervisory board of RB Rail, the joint venture established by Latvia, Estonia and Lithuania for managing the Rail Baltic European-gauge railroad project, was led by Estonia, decision-making was smoother, but now under Lithuania's leadership decisions are being delayed, the company's CEO Baiba Rubesa said LETA.

The RB Rail CEO underlined at the same time that the European Union has given a serious signal that a well and transparently managed joint venture is key to the project's successful implementation. This will provide economy of scale, transparent management of financial and procurement processes and will ensure compatibility of complex infrastructures, which is especially important in terms of technical safety and railway operation. The joint project will benefit the three Baltic countries as well as everyone else who might potentially want to join it. The joint venture is not a whim, but a way the EU sees the project's implementation, Rubesa said.

Michael Cramer, chairman of the European Parliament's Committee on Transport and Tourism, warned in an interview that the Baltic states risk losing EU funding for Rail Baltic if they prove unable to reach common ground on the project's implementation.

The Baltic states have reportedly failed to agree on the distribution of Rail Baltic money. Lithuania feared that, with all orders conducted by the Latvia-registered company RB Rail, VAT would remain in Latvia. Lithuania has always wanted the VAT for the work done in Lithuania to stay in the country's territory. In July, ministers of Lithuania, Latvia and Estonia agreed on VAT distribution, however, the countries are still at odds over the final financing scheme.

The three countries have still failed to agree on the appointment of RB Rail board members.

Rail Baltic project coordinator Catherine Trautmann has also warned about the Baltic states possibly losing the support in case of failure to agree on project implementation.

Last year, the European Commission granted 106 mln euros for project implementation in Lithuania, in addition to nearly 191mln euros earmarked this year.