Slow and Steady Wins the Race

The Board of Directors approved the investment program on December 29, allocating 713.6 billion rubles—a 20% reduction from the previous year's budget.

The lion's share of these funds—531.4 billion rubles—will be allocated to maintaining fixed assets and ensuring transportation safety. Within this allocation, 288 billion rubles is designated for capital overhaul of infrastructure and rolling stock, along with the replacement and modernization of automation and electrical supply systems, while 161.7 billion rubles will support the acquisition of rolling stock, encompassing the procurement of up to 400 locomotives and up to 190 passenger cars.

Irina Okladnikova, First Deputy Finance Minister of Russia, who attended the Board of Directors meeting, stressed that the approved measures (including state subsidies for rolling stock procurement, partial compensation of operational costs, and extended insurance contribution payment terms) will safeguard the company's financial stability.

Officials in the relevant government agencies have previously advocated shifting focus from large-scale, capital-intensive projects toward maintaining and preserving existing infrastructure—a shift warranted by current economic conditions.

Igor Nikolaev, Chief Research Fellow at the Center for Innovative Economy and Industrial Policy (Institute of Economics, Russian Academy of Sciences), states that prioritizing the preservation of existing infrastructure in operational condition represents an appropriate strategy amid the prevailing economic environment. "November 2025 marked a watershed moment: industry recorded its first monthly contraction in the dataset. As we embark on 2026 with such a trajectory, the economy faces mounting headwinds," Nikolaev observes.

Igor Nikolaev highlights that freight loading on railways—a key leading indicator of economic health—signals an economic slowdown. He notes that the economy operates with considerable inertia: "If we enter 2026 on a downward trajectory, it's unrealistic to expect a rapid reversal toward growth that would necessitate accelerated infrastructure investment."

Russian Railways' investment program also encompasses development projects. The program allocates 120 billion rubles toward the Moscow–St. Petersburg high-speed rail project and 62.2 billion rubles for mainline infrastructure expansion.

Maria Nikitina, founder of the N.Trans Lab project, concurs with this assessment. "We've exhausted the efficiency gains available through operational adjustments and management optimization in logistics and transport. The current downturn clearly reflects sanctions pressure constraining our economy. However, without continued infrastructure development, conditions will deteriorate further," she contends. In her assessment, priority initiatives include the Eastern Polygon and the North–South International Transport Corridor, followed by the Northern Sea Route.