Foreign analysts have concluded that Russia's aggressor countries are increasingly having difficulty delivering goods to China through their vast eastern railway network. The main reasons are the war against Ukraine and sanctions.
Points of attention
- Russian Railways has reduced its investment program by 30%.
- It is currently experiencing its deepest recession since the 2008-2009 crisis, which indicates Russia's serious economic difficulties.
The spectrum of economic problems in the Russian Federation is constantly expanding
What is important to understand is that Russian Railways recently supported a 30% reduction in its investment program for 2025 due to the rapid increase in the cost of borrowing.
The increase in war-related cargo is also exacerbating existing bottlenecks, while sanctions are affecting cross-border payments. These factors, along with long-standing logistical problems, are slowing the transportation of goods such as coal and aluminum.
Interestingly, the Moscow company MMI Research does not hide that in 2024 the railway will experience the deepest decline since the crisis of 2008-2009, so everything is serious.
Experts believe that this is due both to the needs of the army — loading the network with priority cargo — and to the aggravation of problems with rolling stock.
Russia cannot hide all its problems
As is known, the illegitimate President of the Russian Federation, Vladimir Putin, continues to cynically lie that the Russian economy is “blooming and thriving.”
Despite this, he acknowledged that inflation "is a concern."
Against the backdrop of the Russian dictator's latest statements, it is worth noting that the picture for Russian Railways is not so rosy.
The carrier, which has often borrowed money for investments on open markets, is now largely closed to them due to sanctions. State support is limited as Moscow refocuses its budget on the war, the editorial board of the publication writes.
It's no secret that the aggressor country focused its trade on Asia, counting on the so-called "Eastern Training Ground" railway network.
It is 14 thousand kilometers long and connects the two longest railways in the Russian Federation.
