Russian Railways Faces Economic Setback with Decline in Cargo Volumes

Russian railway cargo volumes dropped by 5.6% in 2025, reaching a 16-year low, due to reduced shipments in oil, construction, metals, and coal. The decline reflects the slowing war economy and challenging global markets. In response, Russian Railways plans to cut spending by 20% in 2026.

Russian railway cargo volumes witnessed a significant drop of 5.6% in 2025, according to state-owned Russian Railways. The decline is attributed to decreased shipments of oil, construction materials, metals, and coal, highlighting challenges in the nation's export-driven economy.

This dip brought cargo loading levels to 1.116 billion tonnes, a record low not seen in 16 years, as reported by the railway giant. Russian Railways, the largest commercial employer in the country, is grappling with a hefty 4 trillion rouble debt while facing declining revenues from cargo transport.

In a bid to counter the financial strain, the company announced plans to cut its 2026 spending by 20% from 2025, reducing expenditure to 713.6 billion roubles. This move is expected to affect suppliers nationwide. As of current exchange rates, $1 equals 78.9000 roubles.

(With inputs from agencies.)