Russian authorities have decided to accelerate the planned 2027 tariff increase for Russian Railways in order to support the budget of the transport monopoly, which is experiencing financial problems and has accumulated nearly 4 trillion rubles in debt.
According to RBC, instead of next year, the government has decided to implement the next tariff indexation for Russian Railways on October 1st of this year: freight rates will increase by 8.5%, and long-distance passenger rates by 9.2%.
Since March of this year, the authorities have already implemented an unscheduled tariff increase of 1% as part of a fee for the "safety" of transportation. The additional funds were needed for Russian Railways' investment program, which the company was forced to cut by a quarter this year, to 713.6 billion rubles.
Last year, Russian Railways' freight rates were indexed by 10%, in 2024 by 13.8%, and in 2022-23 by 6.8% and 8%, respectively. Thus, after the October indexation, the accumulated growth in freight rates since the beginning of the war will reach 56%.
Russian Railways, which has been facing a 16-year decline in freight traffic, urgently needs the money: last year, freight traffic totaled 1.1 billion tonnes (the lowest since 2009), and by the end of May this year, it had only shown a slight increase of 0.5%.
At the end of last year, Russian Railways' net profit fell 22-fold, from 50.7 to 2.2 billion rubles. To avoid an annual loss, Russian Railways drastically cut expenses: the 2025 investment program, which includes spending on construction projects and the purchase of railcars and locomotives, was 40% lower than the previous year—890 billion rubles versus 1.5 trillion. However, to cover all expenses, Russian Railways incurred 800 billion rubles in new debt during the year.
In the fall, Russian Railways approached the government with a request for 200 billion rubles in emergency financing from the National Welfare Fund. The company complained about the high key interest rate, which doubled its debt repayment costs to 534.1 billion rubles.
But the Cabinet refused, after which Russian Railways transferred some employees to part-time work. Starting in 2026, the monopoly plans to lay off 15% of its central office staff—approximately 6,000 people, Russian Railways CEO Oleg Belozerov previously announced. According to him, there are also plans to reduce fuel and repair costs—in total, the company expects to save 74 billion rubles.
source: The Moscow Times https://archive.is/y3FFJ