Decline of the Russian economy during the war slowed Russian rail trade with China – Bloomberg

Russia is facing increasing difficulties getting goods to China via its eastern railway network, a sign of economic problems caused by the war and sanctions, despite assurances from the Kremlin that all is well. This is reported by Bloomberg, writes UNN.

Details

According to the newspaper, JSC “Russian Railways” last week approved a 30% reduction in its investment program for 2025 due to the rapid increase in the cost of borrowing.

The increase in war-related cargo also exacerbates existing bottlenecks, while sanctions affect cross-border payments. These factors, along with long-standing logistical problems, slow the transportation of commodities such as coal and aluminum,

At the same time, the Moscow company MMI Research said that this year the Russian railway “is experiencing the deepest decline since the crisis of 2008-2009, and this trend is still persisting.”

Bloomberg emphasized that this situation shows tensions within the Russian Federation.

At the same time, Russian dictator Vladimir Putin assures that the economy of the Russian Federation is in good condition.

We will remind

The US Treasury Department is considering additional sanctions against the Russian “shadow fleet” and possible restrictions on Chinese banks. The reduction of the price limit for Russian oil below 60 dollars per barrel is also being discussed.