Russian Railways loses billions: how the crisis in Russian railways will impact the economy

According to hvylya.net: The financial situation of 'Russian Railways' in Russia continues to deteriorate rapidly - this information was published by the Ukrainian Foreign Intelligence Service. Data for the first half of 2025 indicates a 7.3% decline in transportation volumes, with grain shipments suffering the most (-35.6%), industrial goods (-19.4%), and construction materials (-17%). This trend has been ongoing for the third consecutive year.

'The company's net profit has decreased by 95%, to $33.9 million. Due to the decrease in cargo traffic, 'Russian Railways' may lose up to $1.1 billion in revenue in 2025. At the same time, the updated financial plan of the company looks unproductive under the growing debt pressure and declining profitability.

The corporation has reduced investments and halted infrastructure projects aimed at increasing exports to China. Upgrading railways and purchasing equipment have been suspended. Since July, employees have been forced to take two unpaid leave days. Despite this, 30,000 employees of 'Russian Railways' security department carry firearms of up to 20 mm caliber, which poses threats of escalating social tensions,' the intelligence reported.

The crisis is also accompanied by corruption scandals. Top executives of the corporation are enriching themselves with millions. One of the latest cases involves a government bribe to the energy director of the monopoly, Valentin Sanyk, amounting to over $18.5 million, for which he was detained on August 2.

'Even considering the systemic importance of the company in the economy, the expected state support is unlikely to be effective amid the growing budget deficit,' the Ukrainian Foreign Intelligence Service emphasized.

In the first half of 2025, the financial condition of 'Russian Railways' in Russia showed deterioration due to declining transportation volumes, reduced profits, and financial difficulties arising from increasing debt pressure and corruption scandals.