russian railways on the Verge of Bankruptcy

The load factor of “russian railways” (rzd) has been decreasing for 20 months in a row. In 2024, the decline reached 4 %, and in the first five months of 2025, it was already over 7 %. There are 300,000 empty railway wagons on railway lines – almost 20 % of the entire fleet.

The company is facing a chronic shortage of staff: thousands of locomotive crews are understaffed due to mobilization, emigration, and the absence of migrant workers. There is a shortage of 2,500 engine-drivers and about 3,000 other workers.

Wear and tear of the rolling stock is exacerbating the crisis: half of the 20,000 locomotives need to be replaced. To upgrade the fleet by 2035, the company will have to spend $3-3.5 billion annually, but it does not have the funds.

Amid the problems, the rzd is cutting infrastructure projects. Funding for the expansion of the BAM and Transsib (Trans-Siberian Railway – Transl.) has been cut by two-thirds, while the development of routes to European ports has been frozen.