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 JSC 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.
- Natural monopoly which owns the third-longest rail network in the world, with more than 85,500 km of track as of 31 December 2019, and related infrastructure in Russia.
- JSC 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 2019 had an operating fleet of locomotives amounting to 14,014 units.
- Russian Railways is the largest operator of freight rolling stock, with more than 142,000 cars.
- Russian Railways is one of the largest companies in Russia in terms of assets: in accordance with International Financial Reporting Standards, the Company’s financial statements had an estimated value of about 5.16 trillion roubles (about $83.4 billion) as of 31 December 2019.
- Revenues from all activities in 2019 amounted to 2,507.5 billion roubles.
- The Russian Railways Holding is the largest employer in Russia: the Company and its subsidiaries employed about 900,000 people according to figures as of the end of 2019.
- Russian Railways is guided by the principles of social responsibility and in 2019 allocated more than 22 billion roubles to the implementation of the Company’s obligations under the Collective Agreement.
Features of the Russian rail industry
- Because of the country’s huge territory and vast natural resources, a highly developed railway system is vital to Russia - rail is the key transportation mode in Russia with over 87% of the total volume (excluding the pipeline).
- Many of Russia’s natural resources are in remote, harsh and sparsely populated regions of Siberia and the Russian Far East that have underdeveloped road infrastructure and are far removed from the main population centres in European Russia.
- Railways connect 77 of Russia’s 85 regions and provide services to most major cities, having a direct impact on growth, industrial development and regional integration.