Key threats

Key potential threats to Russian Railways

• Shipment Volume

  A slowdown in growth or a decline in domestic shipment volumes due to the slowing of industrial production in the country.

• Government Support

  A reduction in state budget expenditures to support the development and operation of railway transportation that leads to decreased carrying capacity combined with a high level of wear and a substantial number of bottlenecks.

• Tariffs

  Tariff restrictions, insufficient compensation from all budgets and uncertainty in the state tariff policy with respect to railway transportation.

• Competition

  Increased competition in traditional and potential income-generating segments of the domestic transportation market and abroad. Increased competition from road, pipeline and water transportation

• Infrastructure

  Diminished carrying and processing capacity of infrastructure due to growth in the empty runs of private railcars on the main routes of the network.

• Technologies

  A disruption of technological communications as a result of the sale of a controlling (blocking) stake in the S&A of Russian Railways.