War has derailed Russian railways
russian railway monopoly “RZD” records a record decline in freight volumes — for the period of January-April 2025, the decrease amounts to nearly 6.8%, with a sharper drop of 8.6% in April. The most significant reduction in cargo flows is seen in the metallurgical, construction, oil, and agricultural sectors.
▫️ These problems are systemic and directly result from the war that russia is waging against Ukraine. russia has redirected logistics and transport resources to military needs. Sanctions and the loss of external markets have led to a sharp reduction in freight transportation in the civilian sector. RZD is forced to substantially cut investment programs and spending on updating locomotives, wagons, and railway infrastructure.
The situation RZD finds itself in is yet another alarming signal of deepening economic problems in russia. The consequences of the war are now felt not only at the front line but also across critical infrastructure sectors without which russian economy cannot function normally.
