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Russian Railways has announced a 20% reduction in its 2026 budget to 713.6 billion roubles (USD 9.15 billion) as it navigates a growing debt burden of 4 trillion roubles (USD 50.8 billion). The company plans to allocate funds primarily for infrastructure and safety, railcar procurement, and the Moscow-St Petersburg high-speed rail project. VTB CEO Andrei Kostin emphasized that maintaining investment levels is crucial amid debt restructuring. Current spending remains far below the previous year's record of 1.5 trillion roubles, impacting suppliers reliant on the company's contracts.
Russian Railways has set its 2026 budget at 713.6 billion roubles (USD 9.15 billion), marking a reduction of about 20% compared with this year's 890.9 billion roubles. The state-owned company said the cut reflects ongoing efforts to manage its substantial debt, which has reached 4 trillion roubles (USD 50.8 billion) due to declining revenues from the slowdown in Russia's war-driven economy. Advertisement
Of the approved allocation, 531.4 billion roubles will be directed toward maintaining infrastructure and safety standards, 161.7 billion roubles will go toward purchasing new railcars, and 120 billion roubles are earmarked for the construction of the high-speed rail line between Moscow and St Petersburg.
Andrei Kostin, CEO of VTB, the largest creditor of Russian Railways and the country's second-largest bank, noted that sustaining investments at a significant level remains a key focus in ongoing debt restructuring discussions.
Russian Railways spending this year has already been significantly lower than previous levels, which has affected suppliers dependent on its contracts. In comparison, the company's record spending reached 1.5 trillion roubles in the previous year, highlighting the scale of the current reductions.
Source Reuters
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