The decline of Russian Railways is accelerating: profit fell by 95% in six months
Фото: з відкритих джерел
According to the results of the first half of 2025, Russian Railways continues to decline rapidly. The company’s net profit decreased by 95%.
This was reported by the Foreign Intelligence Service.
Russian Railways’ transportation volumes decreased by 7.3% year-on-year, with deliveries falling the most:
- grain – minus 35.6%;
- industrial cargo – minus 19.4%;
- building materials – minus 17%.
It is noted that the downward trend has been observed for the third year in a row.
“The company’s net profit decreased by 95%, to $33.9 million. Against the backdrop of reduced freight traffic, Russian Railways expects to lose $1.1 billion in revenue in 2025. At the same time, the company’s updated financial plan looks unrealistic – in the face of growing debt pressure and falling profitability,” the SZR noted.
In addition, Russian Railways has cut investments and suspended infrastructure projects aimed at increasing exports to China. Track modernization and equipment purchases have been frozen.
Starting in July, employees are being forced to take two days of vacation every month at their own expense.
The crisis is unfolding against the backdrop of corruption scandals. The corporation’s top management is embezzling millions. Among the latest examples is the arrest on August 2 of the monopolist’s energy director, Valentyn Sanko, 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,” the intelligence agency added.
It was previously reported that business activity in Russia’s industrial sector fell in July 2025 to its lowest level since March 2022 .
As reported, up to 20% of car dealerships in Russia may close by the end of the year.
In addition, Russia’s largest automaker AvtoVAZ has suspended production from July 29 to August 11 inclusive . The official reason is “corporate vacation,” but in reality the decision is related to a critical situation on the market: the company’s warehouses are overflowing with unsold cars.