The publication highlighted that Russia’s railway industry is facing its steepest crisis since 2008–2009, and the downward trend shows no signs of recovery.
"Exports branch is the most affected and logistical challenges in train operations mount," the journalists wrote.
"Russian Railway's freight volume dropped by 4.1% in 2024, totaling 1.181 billion tons — a shortfall of 51 million tons compared to the initial plan of 1.265 billion tons, according to Russian official statistics."
"This 7% decline exceeds the combined downturn of the first two years of the war (-3.7% in 2022 and -0.1% in 2023)."
Key industries hit by transport declines
- Coal shipments fell by 5.4%, as Russian coal producers faced a steep drop in exports, forcing them to cut production to the lowest levels since the COVID-19 pandemic in 2020.
- Steel and metal transportation plunged by 9.2%, as Russia’s top metallurgical companies struggle to export their products.
- Lumber transport — which already fell 14.2% in 2023 due to the EU embargo — declined another 2.2% in 2024.
- Construction materials shipments collapsed by 14.5%, while grain transport dropped by 4.6%.
The only sectors that saw increased freight movement were:
- Coke (+2.3%)
- Fertilizers (+6.2%)
- Container cargo (+1.1%).
Rail infrastructure struggles as Russia’s economy pivots East
The downturn — the worst since the global financial crisis of 2008–2009 — is being driven by a shrinking raw material export market and severe locomotive shortages.
Additionally, Russia’s rail network is struggling to adapt to its economic shift toward the East. The average train speed dropped to a post-Soviet low of 34.5 km/h, while thousands of trains were left stranded.
The situation has severely disrupted imports, preventing 80 million tons of goods from entering Russia.
Military prioritization and funding shortfalls
Railway logistics crisis is further exacerbated by military transport priorities, as war-related cargo is prioritized over commercial shipments.
Meanwhile, plans for large-scale rail infrastructure modernization have been postponed indefinitely due to budget constraints.
Russia is now allocating one in every three rubles to military spending, forcing a 37% cut in railway investment program for 2025—from 1.3 trillion rubles ($14.6 billion) to 834 billion rubles ($9.4 billion). The remaining budget will be mostly used for maintenance rather than expansion.
In response to financial strains, passenger ticket prices increased by 11.6% starting Dec. 1, 2024. The hike applies to both regulated (economy-class and general seating) and unregulated (business-class and luxury) train fares.