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Logistics problems at Russian Railways threaten the economy of metallurgical enterprises

Companies whose logistics directly depend on Russian Railways incur losses due to the inability to deliver products on time.

Logistics problems at Russian Railways threaten the economy of metallurgical enterprises

The Russian Steel Association, representing the largest producers of metallurgical products in Russia, has drawn attention to serious logistical problems at Russian Railways. Restrictions on the movement of empty cars and systemic failures in the operation of the railway network lead to interruptions in the supply of raw materials and finished products, which threatens the rhythm of work of metallurgical enterprises. This may cause significant economic consequences.

Metallurgists have appealed to the Minister of Transport of the Russian Federation with a request to solve the problem, since interruptions at Russian Railways have already led to a decrease in the loading of ferrous metals by 9.5% in January 2025. At the same time, the production of pig iron and rolled products increased, and the decrease in the output of steel and pipes was insignificant. The imbalance between product output and loading volumes forces enterprises to use more expensive motor transport. Companies whose logistics directly depend on Russian Railways incur losses due to the inability to deliver products on time.

Against the backdrop of slowing construction activity, falling steel prices and the introduction of new taxes, logistics restrictions on Russian Railways are aggravating the situation in the metallurgical industry. This undermines the effectiveness of state support aimed at stabilizing the crisis situation in the industry and increases the costs of organizing logistics.

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