The load on Russian Railways (RZhD) has been falling for 20 consecutive months, effectively bringing the national operator to the verge of bankruptcy.
This was reported by Ukraine’s Foreign Intelligence Service (FISU), Ukrinform saw.
Last year, the decline reached 4%, and in the first five months of 2025, it exceeded 7%. Some 300,000 carriages, or almost 20% of the entire fleet, stand idle.
According to intelligence analysts, Russian Railways suffers chronic staff shortage as thousands of locomotive crews are understaffed due to military mobilization, emigration, and lack of migrant workers. The company falls short of 2,500 train drivers and nearly 3,000 employees in other positions.
Wear and tear of RZhD’s rolling stock is exacerbating the crisis as 10,000 of the 20,000 locomotives require replacement. To upgrade the fleet by 2035, the company will have to channel $3-3.5 billion annually, but no such funds are available.
Amidst mounting issues, Russian Railways is cutting infrastructure projects. The budget for the expansion of the Baikal-Amur and Trans-Siberian routes has shrunk by two-thirds, while any development of rail lines toward European ports has been put on freeze.
As Ukrinform reported earlier, petrol prices are rising in Russia, which is expected to cause another wave of inflation.
Source: Russian Railways on brink of bankruptcy - Ukraine intel
