MOSCOW, November — Russian Railways is reportedly burdened with a debt of about US $51 billion (roughly 4 trillion roubles).

The Russian government is now weighing various support measures for the national rail operator, including possible freight‑tariff increases, subsidies or tax relief, and even a debt‑to‑equity conversion that could see a portion of the debt converted into shares giving state banks a stake in the company.

The huge debt level reflects deep financial pressures within a company that once reported substantial revenues, but has recently seen its net debt jump and its short-term obligations swell.

The implications for Russia’s rail sector are significant: a distressed Russian Railways could affect freight movements, passenger services, and long‑term infrastructure planning especially in a context where cargo volumes and economic activity have weakened.

The coming government decision will thus be pivotal in determining whether Russian Railways can stabilize its finances and continue operations at scale.

Source: Reuters