Russian Railways (RZD) is facing serious financial difficulties. This is forcing the company to revise its plans to upgrade infrastructure and rolling stock.
In 2025, RZD reduced spending on the purchase of rails, wagons and locomotives due to a drop in freight traffic and a decrease in revenue.
In the first four months of 2025, freight traffic on the RZD network continued to decline, falling by almost 7%. The forecasts for the year remain unfavorable: the total volume of traffic is expected to decrease by 3% compared to previously planned, which will lead to a shortfall of about 87 billion rubles.
The reduction in revenue forced the management of RZD to reduce the investment program for 2025. Initially, it was planned to invest 1.3 trillion rubles, but this amount was reduced to 890 billion rubles, and then to 857.5 billion rubles. This will primarily affect the purchase of new rolling stock, the renewal of rails and the modernization of infrastructure.
An additional challenge for the company was a sharp increase in the cost of servicing loans. Due to the increase in the key rate of the Central Bank, loan payments in 2025 will amount to almost a quarter of RZD's total revenue — 688 billion rubles. This is almost six times more than a year earlier. To reduce the debt burden, the company plans to reduce the amount of borrowing.
The situation was also affected by external circumstances — a decrease in demand from major exporters, a tightening of monetary policy, sanctions pressure and a deterioration in the global situation. In addition, attacks on oil refineries and a reduction in production in a number of industries had a certain impact.
Last year, RZD received state support in the amount of 162 billion rubles. However, in the context of priority financing of other state programs, the prospects for additional assistance remain unclear. Funding for the expansion of the BAM and Trans-Siberian Railway has also been reduced.
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