Latvian rail operator Vivi slaps 5.7m penalty on koda Vagonka for train delivery delays

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Latvian passenger train operator Vivi will impose a contractual penalty of €5.7 million on Czech manufacturer Škoda Vagonka for repeated delays in delivering electric trains and failing to fix persistent defects within agreed deadlines, the company confirmed on Thursday.
Raitis Nešpors, chairman of Vivi’s board, told Latvian public broadcaster LSM that the penalty reflects the severity of the breaches and the operational impact on Latvia’s rail network. “The delays and unresolved technical issues have disrupted passenger services and forced costly temporary replacements,” Nešpors said. Škoda Vagonka, a subsidiary of the Czech engineering group, was contracted to supply modern electric multiple units under a multi-year agreement signed in 2023. Delivery milestones were repeatedly postponed, with the latest batch of trains still not operational as of June 2026.
The dispute underscores broader challenges in the Rail Baltica corridor, where regional rail operators are under pressure to modernise fleets while meeting EU decarbonisation and connectivity targets. Rail Baltica’s ongoing BIM for Rail Bootcamp 2026 in Riga this week brings together over 100 infrastructure professionals to accelerate digital tools for high-speed rail projects across the Baltics . Meanwhile, Latvian Transport Minister Rihards Kozlovskis reiterated on Wednesday that Rail Baltica’s full implementation remains contingent on continued EU funding, warning that without it, the €5.8 billion project risks stalling .
Vivi’s legal action follows a pattern of contractual disputes in the Baltic rail sector. In Lithuania, the government has also faced delays in electrifying key routes, while Poland’s Port Polska recently held technical workshops with Rail Baltica experts to align high-speed rail standards across borders .
Industry analysts suggest the Vivi–Škoda Vagonka case may set a precedent for future procurement contracts in the region, where rapid EU-funded modernisation programmes are colliding with supply chain and quality control bottlenecks. Škoda Vagonka has not publicly responded to the penalty announcement, but the dispute is expected to proceed to international arbitration under the terms of the original contract.
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