Russia's wartime economic decline slows rail trade with China - Bloomberg
Kyiv • UNN
“Russian Railways cuts its investment program by 30% due to rising borrowing costs. Increased military cargo and sanctions create logistical problems in trade with China.
Russia is facing increasing difficulties in delivering goods to China through the eastern railroad network, indicating economic problems caused by the war and sanctions, despite the Kremlin's assurances that everything is fine. This was reported by Bloomberg, according to UNN.
Details
According to the newspaper, Russian Railways last week approved a 30% reduction in its investment program for 2025 due to the rapid increase in borrowing costs.
The increase in war-related cargo is also exacerbating existing bottlenecks, while sanctions are affecting cross-border payments. These factors, along with long-standing logistical problems, are slowing the transportation of commodities such as coal and aluminum,
At the same time, Moscow-based MMI Research said that this year the Russian railroad “is experiencing the deepest decline since the 2008-2009 crisis, and this trend is still continuing.
Bloomberg emphasized that this situation shows tensions within Russia.
At the same time, Russian dictator Vladimir Putin assures that the Russian economy is in good shape.
Recall
The US Treasury is considering additional sanctions against the Russian “shadow fleet” and possible restrictions on Chinese banks. There are also discussions of lowering the price limit on Russian oil below $60 per barrel.
