Russian Railways suffered record losses in the first half of 2025

Transportation volumes decreased by 7.3% year-on-year, with the largest declines in the supply of grain (–35.6%), industrial cargo (–19.4%), and building materials (–17%).

Against the backdrop of a reduction in freight traffic, Russian Railways expects to lose $1.1 billion in revenue in 2025. At the same time, the intelligence agency noted, the company's updated financial plan looks unrealistic — in the face of growing debt pressure and falling profitability.

The corporation has cut investments and suspended infrastructure projects aimed at increasing exports to China. Track modernization and equipment purchases have been frozen.

According to intelligence, since July, employees have been forced to take two days of vacation every month at their own expense. Despite this, 30,000 Russian Railways departmental security personnel are armed with firearms of up to 20 mm caliber, which creates risks of escalating social tension.

The crisis is unfolding against the backdrop of corruption scandals. The corporation's top management is embezzling millions, for example, on August 2, the monopolist's energy director, Valentin Sanko, was arrested on charges of embezzling over $18.5 million.

Despite the company's systemic role in the economy, the expected state support is unlikely to be effective given the massive growth in the budget deficit.