State-owned Russian Railways is facing its most significant crisis since the Great Recession, with freight volumes plummeting due to Western sanctions and reduced flows of agricultural and construction materials. Congestion, unused carriages, personnel shortages, and a lack of locomotives are compounding the issues, signalling a potential industrial slowdown.

While military freight has seen growth, overall shipments have declined for 20 consecutive months, with a sharp 7% drop in the first five months of 2025. This downturn is attributed to decreased exports, a struggling construction industry, and logistical challenges, including port closures due to bombings. Despite increased tariffs and passenger transportation profits, the company's net profits have fallen, leading to budget cuts and hindering necessary infrastructure improvements.