Russia’s railway industry faces a downturn with a 30% investment cut and a 5% decline in freight, complicating trade with China.
Decline in Russia’s Railway Industry
Russia’s railway sector is facing a major downturn, marked by a 5% drop in freight volumes and substantial economic challenges stemming from the Ukraine conflict. MMI Research indicates this slowdown is the worst since the Great Financial Crisis, impairing crucial trade routes, especially with China.
Investment Reductions and Trade Challenges
Next year, railway investments are expected to plunge nearly 30% to about 890 billion rubles due to soaring interest rates. These cuts hinder the state-owned Russian Railways’ ability to enhance infrastructure, further complicating trade with China and worsening supply chain bottlenecks.
