From Yahoo Finance: 2025-05-23 03:04:00

Major Russian exporters like Rusal and Gazpromneft have cut rail shipments of metal and oil products, as demand slows due to a war economy. Russian Railways plans to reduce spending by $408 million due to revised cargo forecasts. Cargo volumes have fallen 6.8% year-on-year, impacting key sectors like iron and steel.

The state-owned rail monopoly expects to transport 36.7 million metric tons less than initially projected for 2025. Companies like Rusal, Severstal, and MMK are contributing to reduced rail shipment volumes. Tight monetary policy, high interest rates, and reduced demand from other sectors are affecting cargo volumes, with steel producers like Severstal and MMK cutting loading volumes.

Russia’s iron and steel industry, which contributes nearly 5% to the country’s GDP, has seen export revenues plunge due to Western sanctions. Steel production, exports, and local demand dropped in 2024 and have continued to decline in 2025. Reduced exports of wood, fertiliser, metals, and oil products to China have also impacted cargo volumes.

Aluminium giant Rusal is sticking to plans to cut annual output by 250,000 tons due to rising alumina prices. Increased sanctions on metal, forestry, and oil companies like Gazpromneft, Surgutneftegaz, and Tatneft have negatively impacted the industry. Trade turnover between Russia and China is down 7.5%, with third-party interference and Ukrainian drone strikes affecting oil refineries.

Read more: Exclusive-Russia’s major exporters cut rail cargo volumes as economy slows, document shows