What’s Going On: Debt, Declining Revenues, and Cuts

The pressure has hit one of Russia’s largest employers — Russian Railways — which employs roughly 700,000 people. The company is reportedly struggling under a nearly $51 billion debt burden, caused by sharply falling revenues amid a broader slowdown in domestic demand and disruption of export markets. In response, Russian Railways has begun slashing jobs, especially in its management and administrative ranks, and requested that some central-office staff take unpaid leave days — signalling a sweeping workforce restructuring. (Reuters)

 

But railways are just one example. Across multiple sectors — from rail and transport to heavy industry, mining, steel, coal and manufacturing — companies have cut hours, reduced shifts or quietly laid off workers as the “war economy” slows, Western sanctions bite harder, and domestic demand shrinks. (Reuters)

 

If tens or hundreds of thousands of public-sector and state-employer jobs disappear, the human and social consequences could be severe. For many Russians — especially outside major cities — state enterprises and public-sector employers remain the main source of stable wages and social support. Job losses could lead to rising poverty, economic despair, and decline of regional economies dependent on single large employers.

 

Russia Faces Economic Meltdown as 700,000 State Jobs at Risk

 

 

 

 

700,000 Russians face unemployment?  No way, the Russian front needs more meat for the war machine grinder.

16 hours ago, bannork said:

For many Russians — especially outside major cities — state enterprises and public-sector employers remain the main source of stable wages and social support. Job losses could lead to rising poverty, economic despair, and decline of regional economies dependent on single large employers.

The Oligarchs haven't taken over everything, everywhere, in Russia it seems.

MOSCOW, Dec 1 (Reuters) - Cargo volumes handled by state-owned Russian Railways continued to fall in November, data showed on Monday, as the country's biggest commercial employer grapples with mounting financial problems. November cargo loading fell 1.5% year-on-year to 94.2 million tonnes and January-November volumes dropped by 5.6% to 1.021 trillion tonnes, Russian Railways said in a statement.

 

The Russian government is discussing different ways to prop up Russian Railways, which has amassed a 4 trillion rouble ($50.8 billion) debt pile.

 

Railway cargo volumes, considered an important economic indicator for the health of Russia's export-driven economy, hit a 15-year low in 2024 and kept falling in 2025 due to a slowdown in Russia's war economy and global market conditions.

 

Russian Railways cargo volumes keep falling, data shows

 

VTB CEO Andrei Kostin told Reuters in an interview that Russian banks are ready to restructure some of Russian Railways' debt as long as the central bank does not increase reserve requirements for these loans.

 

FILE PHOTO: A view shows train carriages of the Russian Railways on a frosty day in Moscow, Russia November 17, 2023. REUTERS/Maxim Shemetov/File Photo© Thomson Reuters

While in the Ukraine the "Economic Meltdown" has already happened accross the board.

19 minutes ago, swissie said:

While in the Ukraine the "Economic Meltdown" has already happened accross the board.

What did the Swissie say?

21 hours ago, JimHuaHin said:

700,000 Russians face unemployment?  No way, the Russian front needs more meat for the war machine grinder.

 

Under Russian law, Russians sent to the front line are contractors; they sign on, with a bonis paid by the provincial governments from their budgets.

 

Once the railways start to fall apart, the integrity of Russia starts to be affected. Its a huge country, with an extremely poor road network in the middle. To get to the Russian Far East, you need to fly, in increasingly shonky and unmaintained planes, or take the train. Driving, especially in Winter, is simply not viable.  Also, most of the armaments factory are out in the Far East thanks to Gorby (who caused the fall of the USSR) and Stalin (who moved most heavy engineering east). Most of the engineering capability in Western USSR was in Ukraine......

So no different than the USA, UK, France and Argentina then!