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Foreign Intelligence Service: The systemic crisis of the Russian railway is deepening

Foreign Intelligence Service: The systemic crisis of the Russian railway is deepening
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In the first quarter, the loading volume on the Russian Railways (RZD) network decreased to 277.7 million tons, a decline of 6.1% compared to the same period in 2024.

The negative dynamics regarding loading on the Russian railway have been recorded for most goods. Specifically, the volumes of loading decreased as follows: coal – to 85.1 million tons (-2% year-on-year), oil and oil products – to 50.2 million tons (-6%), container cargo – to 28.9 million tons (-4%), iron and manganese ores – to 26.3 million tons (-0.9%), construction materials – to 19.7 million tons (-23%), ferrous metals – to 13.8 million tons (-13%), and grain – to 5.7 million tons (-30.8%).

In the segment of domestic Russian transportation, a decrease was mainly observed in the transit of construction materials (-23.5%), coal (-5.5%), and ferrous metals (-21.9%).

Among the reasons for the decline in transportation volumes, the SRZRU notes the impact of Western sanctions and the negative economic situation in global commodity markets.

If the current situation on global markets persists and the Russian-Ukrainian war continues, it is likely that the loading volumes on the RZD network will continue to decrease in the second quarter of 2025. The ongoing systemic crisis in the Russian railway sector, now in its third year, is clear evidence of significant problems in the Russian economy due to the war against Ukraine.

 

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