{"id":1276654,"date":"2025-08-06T14:03:25","date_gmt":"2025-08-06T11:03:25","guid":{"rendered":"https:\/\/prm.ua\/the-decline-of-russian-railways-is-accelerating-profit-fell-by-95-in-six-months\/"},"modified":"2025-08-06T14:03:25","modified_gmt":"2025-08-06T11:03:25","slug":"the-decline-of-russian-railways-is-accelerating-profit-fell-by-95-in-six-months","status":"publish","type":"post","link":"https:\/\/prm.ua\/en\/the-decline-of-russian-railways-is-accelerating-profit-fell-by-95-in-six-months\/","title":{"rendered":"The decline of Russian Railways is accelerating: profit fell by 95% in six months"},"content":{"rendered":"<p><strong>According to the results of the first half of 2025, Russian Railways continues to decline rapidly. The company&#8217;s net profit decreased by 95%.<\/strong><\/p>\n<p> This <a href=\"https:\/\/szru.gov.ua\/news-media\/news\/95--padinnya-prybutku-rzhd-pryamuie-do-bankrutstva\" target=\"_blank\" rel=\"noopener nofollow\">was reported<\/a> by the Foreign Intelligence Service.<\/p>\n<p> Russian Railways&#8217; transportation volumes decreased by 7.3% year-on-year, with deliveries falling the most:<\/p>\n<ul><\/p>\n<li> grain &#8211; minus 35.6%;<\/li>\n<p><\/p>\n<li> industrial cargo &#8211; minus 19.4%;<\/li>\n<p><\/p>\n<li> building materials &#8211; minus 17%.<\/li>\n<p><\/ul>\n<p> It is noted that the downward trend has been observed for the third year in a row.<\/p>\n<p> &#8220;The company&#8217;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&#8217;s updated financial plan looks unrealistic &#8211; in the face of growing debt pressure and falling profitability,&#8221; the SZR noted.<\/p>\n<p> 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.<\/p>\n<p> Starting in July, employees are being forced to take two days of vacation every month at their own expense.<\/p>\n<p> The crisis is unfolding against the backdrop of corruption scandals. The corporation&#8217;s top management is embezzling millions. Among the latest examples is the arrest on August 2 of the monopolist&#8217;s energy director, Valentyn Sanko, on charges of embezzling over $18.5 million.<\/p>\n<p> &#8220;Despite the company&#8217;s systemic role in the economy, the expected state support is unlikely to be effective given the massive growth in the budget deficit,&#8221; the intelligence agency added.<\/p>\n<p> It was previously reported that <a href=\"https:\/\/prm.ua\/promyslovyy-sektor-rf-zakhlynaietsia-popyt-padaie-zamovlennia-skorochuiutsia\/\" target=\"_blank\" rel=\"noopener\">business activity in Russia&#8217;s industrial sector fell in July 2025 to its lowest level since March 2022<\/a> .<\/p>\n<p> As reported, <a href=\"https:\/\/prm.ua\/rosiyski-avtodylery-zaznaiut-zbytkiv-avtosalony-masovo-znykaiut-z-rynku\/\">up to 20% of car dealerships in Russia may close by the end of the year.<\/a><\/p>\n<p> In addition, <a href=\"https:\/\/prm.ua\/chotyrydenka-zboi-sklady-pid-zav-iazku-avtoprom-rf-letyt-u-prirvu\/\">Russia&#8217;s largest automaker AvtoVAZ has suspended production from July 29 to August 11 inclusive<\/a> . The official reason is &#8220;corporate vacation,&#8221; but in reality the decision is related to a critical situation on the market: the company&#8217;s warehouses are overflowing with unsold cars.<\/p>\n<div class=\"full-post__content font-rules\">\n<p> Also follow <strong>\u201cPryamim\u201d<\/strong> on <a href=\"https:\/\/www.facebook.com\/pryamiy\/\" target=\"_blank\" rel=\"noopener nofollow\">Facebook<\/a> , <a href=\"https:\/\/twitter.com\/prm_ua\" target=\"_blank\" rel=\"noopener nofollow\">Twitter<\/a> , <a href=\"https:\/\/t.me\/+rtV4dxYu2_cyNjVi\" target=\"_blank\" rel=\"noopener nofollow\">Telegram<\/a> , and <a href=\"https:\/\/www.instagram.com\/pryamiy\/\" target=\"_blank\" rel=\"noopener nofollow\">Instagram<\/a> .<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to the results of the first half of 2025, Russian Railways continues to decline rapidly. The company&#8217;s net profit decreased by 95%. This was reported by the Foreign Intelligence Service. Russian Railways&#8217; transportation volumes decreased by 7.3% year-on-year, with deliveries falling the most: grain &#8211; minus 35.6%; industrial cargo &#8211; minus 19.4%; building materials [&hellip;]<\/p>\n","protected":false},"author":63,"featured_media":1276632,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[76870,76871,76872,76892],"class_list":["post-1276654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","category-news-2","category-news-feed","category-economy"],"_links":{"self":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts\/1276654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/comments?post=1276654"}],"version-history":[{"count":0,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts\/1276654\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/media\/1276632"}],"wp:attachment":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/media?parent=1276654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/categories?post=1276654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}