In February, a protracted crisis in Russia’s rail industry, driven by the slowing economy and sanctions, as well as global market pressures, deepened, adding to the strain on the debt-ridden?state rail monopoly.

Freight volumes are a good indicator of the economy in Russia.

Russian Railways announced on Monday that the cargo shipment volume fell by 3.2% to 84.2 millions metric tons in February.

Since?October 20,23, the cargo volume has been declining year-on-year. The Russian economy is cooling, with growth of just 1% in 2025.

Over 35% of rail cargo is destined for the export market, with coal, metals and oil dominating.

Rail cargo volumes fell 5.6% overall in 2025, as oil, construction material, metals, and coal shipments declined. Data published by the company revealed that cargo loading had reached a 16-year record low of 1.116 billion tons.

"The main impact of the decline in loading volumes is due to a decrease?in bulk cargoes, as a result of lower activity across several industries. This includes coal, metallurgy, and construction." Russian Railways announced?in a Monday statement.

In a report on 2025 results, the Union of Railway Transportation Workers said that global market conditions, sanctions and a strong 'rouble were all factors that affected cargo volumes.

Russian Railways' main revenue source is freight transportation. The company, the largest employer in the country, is facing mounting financial pressure as borrowing costs have risen to their highest level for two decades.

The Russian government, major banks and railway companies are discussing ways of bolstering Russian Railways. These include raising transport prices, restructuring debt and selling non-core assets.

(source: Reuters)