Russian Railways (RZD), which is facing a staggering debt of 4 trillion rubles and projected to incur its first net loss since the pandemic by 2025, is under severe financial distress largely attributed to the ongoing conflict in Ukraine. The article discusses the primary reasons behind RZD's precarious financial situation, noting that sectors of cargo transport have been particularly affected by disruptions and sanctions stemming from the war.

In response to this crisis, the Russian government has enacted an unexpected increase in railway tariffs starting March 1, 2026. This decision, signed by Prime Minister Mikhail Mishustin, aims to raise cargo transport costs by 1% across all freight carriers. The government’s rationale for this tariff increase is to fund expenses related to ensuring transport security, particularly concerning the protection of military transport from potential attacks. This directive reflects a strategic pivot to enhance the military logistics capabilities while managing the economic fallout from the conflict.

The implications of these tariff hikes extend beyond immediate financial relief for RZD. They may invite discontent among freight operators and further strain the broader logistics industry in Russia, particularly as the war continues to disrupt supply chains. As the situation evolves, there are concerns about how these financial strains could affect the efficiency and safety of the railway system, which is vital for both civilian and military operations in the country.