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Dec 05, 2019
CEO of Russian Railways sums up Company’s work in last 11 months
Dec 05, 2019
Russian Railways and VR Group Ltd discuss bilateral cooperation
Dec 04, 2019
Announcement about international services with France
Dec 04, 2019
Increase in coal loading for export from ports in South Russia exceeds 35%
Dec 03, 2019
Russian Railways Holding to help build railway line in Mongolia
Dec 02, 2019
Passenger traffic on network owned by Russian Railways up 2.5% in November
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Overview

Overview

The Company was established by privatising the property of Russia’s federal railway transport, which was carried out in accordance with the legislation of the Russian Federation in 2003. In the process of privatisation, a single business entity was created by transferring property from the federal rail transport organisations and converting it into the statutory capital of OJSC Russian Railways. The Company’s sole shareholder is the Russian Federation. The Government of the Russian Federation exercises shareholder powers on behalf of the Russian Federation. Russian Railways is one of the largest companies in Russia and one of the largest transport companies in the world.

Russian Railways provides a full range of services in areas such as freight transportation, locomotive traction and infrastructure, the repair of rolling stock, long-distance and commuter passenger transport, container shipping, logistics, engineering services and Research and Development, as well as other activities such as the implementation of large-scale projects for the construction of railways and the development of infrastructure abroad.

The Mission of Russian Railways is to carry out the effective development of a competitive transport business on the Russian and global markets. The core Mission is to fulfill effectively the national rail carrier’s tasks of freight and passenger transportation and own the public rail infrastructure.

Key facts:

  • Natural monopoly which owns the third-longest rail network in the world, with more than 85,500 km of track as of 31 December 2018, and related infrastructure in Russia.
  • OJSC Russian Railways is the market leader in freight rail segments and occupies the world’s leading position in terms of freight turnover, ecology, safety and the energy efficiency of freight transportation.
  • The Company owns almost all locomotives in Russia and in 2018 had an operating fleet of locomotives amounting to 14,275 units.
  • Russian Railways is the largest operator of freight rolling stock, with more than 166,900 cars.
  • Russian Railways is one of the largest companies in Russia in terms of assets: in accordance with Russian Accounting Standards, the Company’s financial statements had an estimated value of about 6.26 trillion roubles (about $90.1 billion) as of 31 December 2018.
  • The Company is one of the biggest contributors to the Russian economy, accounting for about 5.3% of the country’s GDP by the end of 2018. Revenues from all activities in 2018 amounted to 1,798.4 billion roubles.
  • The Russian Railways Holding is the largest employer in Russia: the Company and its subsidiaries employed about 735,000 people according to figures as of the end of 2018.
  • Russian Railways is guided by the principles of social responsibility and in 2018 allocated more than 23 billion roubles to the implementation of the Company’s obligations under the Collective Agreement.

Features of the Russian rail industry

  • Russia’s huge territory and large reserves of natural resources necessitate the functioning of a developed rail system in the country. Rail is the main mode of transport in Russia, accounting for about 88% of the country’s transport system (excluding pipelines).
  • Many of Russia’s natural resources are located far from the main settlements of the European part of Russia, in remote, relatively inaccessible and sparsely populated regions of Siberia and the Far East, where road infrastructure is insufficiently developed.
  • The rail infrastructure of OJSC Russian Railways connects 77 of the 85 subjects of the Russian Federation and serves the main cities and has a direct impact on their growth, as well as on industrial development and regional integration.
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