Russian Railways' Cargo Crisis: A Threat to Economic Stability

Russian Railways faces declining cargo volumes and financial troubles, with a 5.6% drop in volumes from January to November. The government is exploring support measures as the railways' debt reaches 4 trillion roubles. VTB expresses willingness to restructure debt contingent on central bank policies.

State-owned Russian Railways is struggling with declining cargo volumes and significant financial challenges, data revealed on Monday. The organization, a key commercial player in Russia, reported a 1.5% drop in cargo loading for November and a 5.6% decrease for the period from January to November.

In response to this downturn, the Russian government is discussing various strategies to support the railways, which is facing a staggering debt of 4 trillion roubles. The decline in cargo volumes, a key economic indicator, reflects difficulties in Russia's export-focused economy amid war and global market shifts.

In a recent Reuters interview, VTB CEO Andrei Kostin stated that Russian banks are prepared to consider debt restructuring for Russian Railways, provided that the central bank maintains current reserve requirements for these loans.

(With inputs from agencies.)