The scenario is currently being analyzed, Svet told  "Esimene stuudio", adding Latvia and Lithuania also need to find a solution to the problem.

The minister said Estonia needs to find between €400 and €500 million for the project in the coming years.

"What are the options for obtaining this funding? Personally, I believe one of these options is taking out a loan. I think if there's ever a time to take a loan, it should be for investments. We know that the money we invest in Rail Baltic will flow right back into our economy, and I believe that, given the importance of Rail Baltic — not primarily for a fast connection between Tallinn and Pärnu, but because it is a strategic project for our country. This is how we connect ourselves with Europe, how we enable goods to move across long distances, not to mention people. So, I believe we will find a solution to this issue, and we need to build this railway," he told the show.

Svet said Latvia and Lithuania have bigger problems than Estonia, but all countries are working hard to complete the route, which stretches from Tallinn to the Polish border.

"Our route is set: We need to build it from the Tallinn to the Latvian border. The Latvians have an issue with the route through central Riga, and the Lithuanians have a detour issue around Vilnius, and they need to address their own challenges. But they say they are committed and will build it. In December, we will meet with their ministers and the European Commission to start negotiating he funding," he said.

"But Latvia and Lithuania are in the same situation as we are; for them, this railway is just as essential — not as a regional line, but as an international connection that enhances the competitiveness of our entire region," the politician added.

Svet said, if Estonia can build its section, it will be possible to nudge Latvia.

"I think that if someone asks what argument we use to convince the Latvians to proceed, I'd say the best argument is that we are the driving force in this process. When the Latvians see us building, it gives them the confidence to build as well."

Although it is currently difficult for Estonia to find the money to subsidize county lines, Svet said maintenance will not be a problem when Rail Baltic is completed.

"Discussions are still ongoing about what the operating model will look like, and I believe we will settle on that next year — who will be purchasing the trains, and so on. Of course, none of this comes for free, but if we look at railway development globally, when railways are built, they are used," he said.

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