RZD Crisis: Investments in Russia's Railways to Decrease by a Quarter in 2026

Crises in 'RZD'

According to ХВИЛЯ: The Russian railway monopoly 'RZD' is experiencing a deep crisis that will affect investments in 2026. According to forecasts, the company plans to allocate 713.6 billion rubles for investments, which is 25% less than planned for 2025. This reduction comes against the backdrop of decreased funding for the purchase of new cars and locomotives, which will decrease by 37%. Additionally, spending on railway construction will be reduced by 20%.

The situation in the freight transport sector is also concerning. The collapse of freight transport is currently considered the deepest in the last 15 years. This has led to a debt accumulation for 'RZD', currently standing at 4 trillion rubles. At the same time, as of 2025, about 300 thousand cars are currently idle, indicating a crisis in the utilization of rolling stock.

Challenges for the Future of 'RZD'

This is the third consecutive year that 'RZD' has been cutting spending on development, reflecting the overall difficulties the company faces. Only 400 new locomotives are planned to be purchased, which is a significant reduction compared to previous years. All these factors indicate serious challenges for 'RZD' and the future of Russian railway infrastructure.

The situation with 'RZD' reflects broader economic problems in Russia, particularly the decrease in demand for freight transport and the overall reduction of investments in transport infrastructure. These difficulties may negatively impact the country's economy, as rail transport is a key element in the transportation of goods. Further cuts in investments could lead to outdated infrastructure and reduced competitiveness of Russian goods in international markets.