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The Company was established through the privatization 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 privatization, a single business entity was created by transferring property from the federal rail transport organisations and converting it into the statutory capital of 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, infrastructure, maintenance and repair repair of rolling stock, long-distance and commuter passenger transport, container shipping, logistics, engineering services and R&D, 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 develop an the effective transport business that is competitive on the domestic and global markets. The core Mission is to fulfill effectively the objectives of a national freight and passenger rail carrier and owner of common-use railway infrastructure.

Key facts:

  • Russian Railways is a natural monopoly which owns the third-longest rail network in the world, (more than 85,500 km of track as of 31 December 2018-) and related infrastructure in Russia.
  • Russian Railways is the market leader in rail freight transport and is number one in the world in terms of freight turnover, environmental friendliness, safety and the energy efficiency of freight transportation.
  • The Company owns almost all locomotives in Russia. The size of its operating fleet of locomotives in 2018 was 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 as of year-end 2018. Revenues from all activities in 2018 amounted to 1798.4 billion roubles.
  • The Russian Railways Holding is the largest employer in Russia: the Company and its subsidiaries employed approximately 735,000 people according to figures as of year- end of 2018.
  • Russian Railways is guided by the principles of social responsibility and. In 2018 , the Company 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 has a huge territory and large reserves of natural resources , which means that it needs a functioning modern railway system. 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 in the European part of Russia. They are in remote, relatively inaccessible and sparsely populated regions of Siberia and the Russian Far East, where the road infrastructure is insufficiently developed.
  • The rail infrastructure of Russian Railways connects 77 of the 85 constituent entitiesof of the Russian Federation serves the major cities and has a direct impact on their growth, as well as on industrial development and regional integration.