The railway industry of the Russian Federation is in a critical state due to a number of systemic issues that threaten the bankruptcy of one of the country’s key state-owned companies. Over the past 20 months, there has been a continuous decline in freight volumes, with approximately 300,000 empty freight cars idling on the railway tracks, which accounts for nearly 20% of the entire fleet.
This is reported by Finway
Decline in Freight Volumes and Logistics Crisis
Freight volumes on the Russian railway have been decreasing for almost two consecutive years. If in 2024 the decline was 4%, then in the first five months of 2025, this figure rose to over 7%. The mass number of empty cars at stations indicates not only a drop in demand for transportation but also a deep logistical crisis: the system is unable to effectively redistribute resources and respond promptly to market changes.
“There are 300,000 empty freight cars idling on tracks across Russia, which accounts for nearly 20% of the entire rolling stock. This fact indicates not only a decrease in freight volumes but also a profound logistical dysfunction — the system is unable to effectively redistribute resources and respond to challenges.”
Staff Shortages and Technical Problems
In addition to logistical difficulties, Russian Railways is facing a severe staff shortage. The main reasons include mobilization, mass emigration, and a reduction in the influx of labor migrants, resulting in a shortage of at least 2,500 locomotive engineers and up to 3,000 workers in other specialties.
The technical condition of the rolling stock is also deteriorating. Half of the 20,000 locomotives require immediate replacement. To renew the fleet by 2035, it is necessary to invest $3-3.5 billion annually, but under the current financial crisis, the company lacks such funds.
The current crisis has already impacted Russia’s strategic infrastructure projects. The government has cut funding for the expansion of the Baikal-Amur and Trans-Siberian railways by 67%, effectively halting the modernization of the most important transport corridors. The development of routes to European ports, which is critically important for international trade, has also been stopped.
An additional blow to the company’s reputation and functionality was dealt by a successful cyberattack recently reported by Ukrainian intelligence. On June 8, cyber specialists disabled the domain rzd.ru and all its services, including mobile applications, further worsening the situation in the railway transportation sector of the Russian Federation.