Finance
Russian rail freight drop deepens in February as economy slows
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
Russian rail freight volumes dropped 3.2% in February to 84.2 million tons, extending a year‑on‑year decline since October 2023. This reflects a broader economic slowdown, with 2025 growth at just 1% and rail cargo hitting a 16‑year low.
Russian Rail Freight Volumes Fall Further as Economy and Exports Weaken
Declining Rail Freight and Economic Impact in Russia
By Gleb Stolyarov
Rail Freight as an Economic Indicator
MOSCOW, March 2 (Reuters) - A protracted crisis in Russia's rail industry - driven by the slowing economy, sanctions and global market pressures - deepened in February, adding strain to the debt-laden state rail monopoly.
In Russia, where the lion's share of all industrial goods is transported by rail, freight volumes have long served as a key gauge of economic health.
Recent Cargo Volume Statistics
Russian Railways said on Monday that cargo shipments fell 3.2% in February to 84.2 million metric tons.
Aside from a brief stabilisation in October last year, cargo volumes have been falling year on year since October 2023. The broader backdrop is a cooling economy: the Russian economy grew just 1% in 2025 and growth is expected to continue to slow.
Export Destinations and Commodity Breakdown
More than 35% of all rail cargo is destined for export, dominated by coal, metals, oil and refined products.
Overall rail cargo volumes fell by 5.6% in 2025 as shipments of oil, construction materials, metals and coal declined. Cargo loading reached 1.116 billion metric tons, marking a 16-year low, data published by the state company showed.
"The main impact on loading volumes comes from a decline in the supply of bulk cargoes due to lower activity in several industries, primarily coal, metallurgy and construction." Russian Railways said in a statement on Monday.
Factors Affecting Rail Freight Volumes
Global market conditions, sanctions, a strong rouble and weakening domestic demand were among the factors impacting cargo volumes, the lobby group Union of Railway Transport Workers said in a review of 2025 results.
Financial Pressure and Government Response
Freight transportation is Russian Railways' core revenue source. But the company - the country's largest commercial employer - is under mounting financial pressure as borrowing costs surge to their highest level in two decades.
Support Measures Under Consideration
The Russian government and major banks are discussing ways to prop up Russian Railways by raising transportation prices, restructuring loans and selling non-core assets.
(Reporting Gleb Stolyarov; Editing by Ros Russell)
Key Takeaways
- •Russian Railways’ February freight shipments fell 3.2% to 84.2 million metric tons, continuing a slide since October 2023.
- •Rail freight volume for 2025 totaled about 1.116 billion tons—the lowest in 16 years—amid broad declines in oil, metals, coal and construction materials shipments.
- •The freight downturn mirrors a slowing Russian economy (GDP grew ~1% in 2025), compounded by sanctions, high borrowing costs, weak domestic demand and falling industrial activity, leading to government and banks exploring support measures for Russian Railways.
Frequently Asked Questions about Russian rail freight drop deepens in February as economy slows
1What caused the decline in Russian rail freight volumes in February?
The drop was driven by a slowing economy, Western sanctions, global market pressures, and decreased demand for key export goods such as coal, metals, and oil.
2How much did Russian rail freight volumes fall in February?
Cargo shipments fell by 3.2% in February to 84.2 million metric tons, continuing a year-on-year decline since October 2023.
3What is the significance of rail freight volumes to Russia's economy?
Rail freight volumes serve as a key indicator of Russia’s economic health since most industrial goods are transported by rail.
4How is Russian Railways coping with declining freight volumes?
Russian Railways is under financial pressure and the government is considering raising prices, restructuring loans, and selling non-core assets to support the company.
5Which goods dominate Russian rail exports?
Coal, metals, oil, and refined products account for the majority of Russia's rail export cargo.
