Russian Railways Faces Crisis Amid Diesel Fuel Shortage and Rising Tariffs
The Russian Railways (RZD), a critical component of Russia's logistics and military infrastructure, is experiencing a severe crisis due to a diesel fuel shortage and financial difficulties. According to Ukraine's Foreign Intelligence Service (SZRU), diesel prices have surged dramatically, doubling in some regions within a week. This shortage is exacerbating the financial strain on RZD, which is already burdened by mounting debt and declining freight volumes. In response, RZD is implementing an unscheduled tariff increase on October 1, raising freight transportation rates by 8.5% and long-distance passenger fares by 9.2%. This marks the second fare hike in 2026, following a previous increase earlier in the year. Despite these measures, RZD has been forced to cut its investment spending by nearly 25%, highlighting the severity of its financial challenges.