“rzd” Is Stuck Between Debt, Fuel Shortages, and a Drop in Transportation

“rzd” will see another fare hike a year earlier than planned – the state-owned monopoly is mired in debt, which has already reached nearly 4 trillion rubles, and is trying to find money by all means available.

Instead of next year, tariffs will be raised as early as October 1. Freight rates will increase by 8.5%, long-distance passenger train fares – by 9.2%. This is already the second unscheduled increase in 2026. Back in March, the government had already introduced an additional “security” fee. The proceeds were directed toward “rzd”’s investment program, although the company itself still cut the program by a quarter – to 713.6 billion rubles.

Following the October increase, “rzd”’s fares will have risen by 56% since the start of the full-scale war. At the same time, freight traffic continues to decline. Last year, the company transported only 1.1 billion tons of freight – the lowest volume since 2009.

“rzd”’s financial problems have coincided with yet another crisis – a shortage of diesel fuel for industrial railway transport. Operators of spur lines, which transport cargo from factories, mines, and quarries to the “rzd” network, have faced supply disruptions and a sharp rise in prices. More than 80% of russia’s freight passes through these sidings, and their operations depend on diesel locomotives and diesel-powered equipment. In some regions, diesel prices have risen to 150–180 rubles per liter – more than double the price at the start of the year. The jump from 60 rubles occurred in just one week. It is practically impossible to find an alternative to diesel for this type of equipment, so the fuel shortage is beginning to hit companies that are already suffering from a decline in freight volumes and a lack of funds.