The impact of sanctions on Russia's railways and how are we fighting them?

Since the spring of 2022, several powerful packages of sanctions have been imposed on Russia, which affect a variety of areas. The restrictions did not bypass the railway either. The sanctions have affected logistics and passenger transportation. Experts take this into account and are working on developing effective solutions to minimize the impact of Western restrictions.

What changes in the work of Russian Railways are related to sanctions

Experts initially said that the railway infrastructure would still be used. The disruption of logistics chains in the spring of 2022 was associated with the ban on the export of a number of goods to Europe. Analysts predicted a decrease in imports by 35-43%.

Over time, many companies have reoriented to the Asian market. In 2022, a significant increase in the volume of cargo export through the Eastern Polygon of the Russian Railway was expected. So far, there are no official figures that could confirm or refute the assumption. 

Vladimir Dorokhov, co-owner of STS Logistics and Development Director of the company, told how Western sanctions hit international logistics. He called it a "triple whammy."

1. Financial losses. We are talking about a sharp increase in the exchange rate of foreign currencies. At the end of February, the euro and the US dollar officially increased by about 40%.
2. Limitations in the software. Russian carriers can no longer use foreign software. This makes unpleasant adjustments to the activity.
3. Destruction of logistics schemes. During the year, the ports in the North-West of Russia were practically not used. But the load on the eastern transport infrastructure has increased.

Vladimir Dorokhov noted that logistical problems are being actively solved. New routes are already being worked out. Experts also discuss how to develop logistics transit hubs and make them more convenient. Russia plans to create new schemes with a number of Asian countries in the coming years. 

Experts are seriously thinking about alternative delivery routes. China is the most promising direction here. You can speed up the delivery time if you send and receive goods from railway stations in the east of the Russian Federation. For example, in Kazan, Yekaterinburg or Novosibirsk.

What will change for passengers

Western sanctions may affect the comfort of transportation. Of course, it won't be noticeable right away. But in the future, many comfortable high-speed trains will fail, and they will have to be replaced by other railway trains. Although some manufacturers, for example, Siemens, promised to continue to provide train maintenance. But deliveries of Western wagons have been stopped and are unlikely to be carried out in the near future.

Consider which trains were under threat. Unfortunately, there are "favorites" of many Russian Railways passengers on the list.

«Peregrine falcon»  

The high-speed train is manufactured by Siemens (Germany). She joined the anti-Russian sanctions. This caused the cancellation of deliveries of the last batch of the train. But the company did not abandon its maintenance obligations. It's a pity, because many passengers like the electric train. It is fast enough, its maximum possible speed is 300 km/h, but in Russia the indicator is 50 km/h less. This difference is due to the different railway infrastructure in the Russian Federation and in the West. The Russian version is wider ― the wagons are about 30 cm wider. The train uses less electricity due to regenerative braking. 

"Swift"

There are only seven such trains in the Russian Railways fleet, but passengers have already fallen in love with them. He was given flattering comments and compared to business class on an airplane. Passengers paid attention to high-quality service and delicious food. Such moments still impress Russian Railways customers. The carriages themselves are quite comfortable, and the compartment is spacious and clean. «Swifts » are produced by Talgo (Spain). The leadership has not officially announced joining the sanctions against the Russian Federation. But as soon as the West began to impose restrictions, the Swifts were immediately removed from the routes. There is no news about why this happened and whether it is worth waiting for the use of these comfortable trains in the future.      

«Swallows» 

The trains beloved by many are also manufactured by Siemens. However, in Russia there is also a company for their production ― "Ural locomotives". This company was founded by agreement between Siemens and the Russian firm "Sinara". Almost all domestic components are used for production. It is not yet known for sure whether new trains will be produced. Many experts are skeptical about this and recommend not to hope too much for a positive scenario. As in the previous case, the train service will continue further.

Stadler

Double-decker trains are produced by the same company from Switzerland. It has opened its own division in Belarus, so there are trains delivered from two countries in the Russian Federation. They serve the "Aeroexpress train" running in the capital. It is too early to say how the sanctions will affect the use of double-decker trains in Russia. But it is already known that the management of Stadler has decided to reduce the activities of its division opened in Belarus somewhat.

Allegro

The trains of the Alstom Group of companies (France), manufactured in Italy, have been removed from the flight. This is due to the accession of the wagon manufacturer to anti-Russian sanctions. Previously, this train connected St. Petersburg with Helsinki. It is unlikely that he will return to the previous route again soon.

How Russian Railways is fighting sanctions

Some citizens are outraged by the fact that many compounds are not produced in the country, but are ordered from other states. But there's nothing strange about that. No state in the world, no matter how resource-rich it is, can produce all goods. That is why countries are increasing cooperation with their neighbors and not only. In the modern world, this is a normal practice.

Russian Railways Holding also takes into account modern realities. It is much more difficult to operate under sanctions. Therefore, in the summer, the holding sent an official letter to the Council of the European Union. The Russian company demanded to lift sanctions against Russian Railways. The measures introduced by the EU were called groundless. The letter indicated what harms these restrictions:

• interfere with doing business;
• discriminate against the population of the Russian Federation;
• restrict the ability to perform humanitarian and socially significant functions.

Sanctions against Russian Railways were included in the very first package of sanctions of the European Union. He was accepted on February 26. The holding hoped that the MEPs would still abandon the restrictions imposed. But at the same time, the state-owned company continues its reorientation to the eastern market.