Russian Railways' Profits Collapse as Debt Hits Record $41.4 Billion
Russian Railways (RZD) faced major financial struggles in 2025 despite a rise in revenue. The company's net profit collapsed, debt soared, and cargo volumes hit a 16-year low. Cost-cutting measures and asset sales are now underway to stabilise its finances. RZD reported a 10.4% increase in total revenue, reaching $39.2 billion in 2025. Yet this growth failed to offset deeper financial problems. Net profit plummeted 22-fold to just $23.9 million, while total debt climbed to a record $41.4 billion.
The company took on $8.7 billion in new debt during the year to cover operating costs. It also sought $2.1 billion in emergency funding from Russia's National Wealth Fund, but the request was rejected. Investment programmes were slashed by 40% compared to 2024, reflecting tighter financial constraints.
Cargo transportation volumes dropped to 1.1 billion tons—the lowest since 2009. To ease the financial strain, RZD announced plans to sell a 49% stake in its Federal Freight Company, aiming to raise around $2.1 billion. Additional asset sales, including the Riga railway station, Likhobory depot, and the Moscow Towers skyscraper, are also planned.
From 2026, the company will cut 15% of its central office workforce, affecting roughly 6,000 employees. These steps come as RZD attempts to reduce costs and stabilise its balance sheet amid ongoing economic pressures. RZD's financial troubles have led to job cuts, asset sales, and reduced investment. The company's debt burden remains high, while cargo volumes and profitability continue to decline. Further restructuring is expected as the railway operator seeks to recover stability.
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