News / New blow for Russian rail freight as China diverts services to Europe

Russia’s dependence on Chinese rail freight has been put into stark focus by the escalating chaos across the tracks following Ukraine’s counter-invasion last month, as the full impact of the west’s sanctions regime begins to bite.

According to reports out of Russia, China’s rail freight operators have been abandoning services to their neighbour as they look to prioritise their European customers.

A logistics expert in contact with Russia’s RZD-Partner, was quoted by Railfreight: “Our partners from China report that six to seven trains out of 10 are currently sent to Europe, with only three to four going to Russia.

“We stand in line and wait. Trains to Russia are delayed and rescheduled. We have cases where trains have been rescheduled for three weeks already.”

Sources had previously told The Loadstar there were indications that volumes made available to Russia following the invasion of Ukraine were being diverted, with new routes to Europe emerging.

It marks a third blow to Russia’s rail services this year, coming after Ukrainian forces gained access to its “entire network” by seizing a Russian station during its August counter-invasion.

This created a situation in which authorities at Russia’s largest intermodal operator, RZD, were rejecting freight services from Belarus because of an influx of Russian soldiers into Kursk by train, which was leading to overcrowding at stations and congestion on the tracks.

Added to this, a sanctions-induced loss of lubricant has wreaked havoc on RZD’s ability to perform basic maintenance on its trains, with the number of breakdowns increasing.

If 2022 and 2023 had been presented as successes by Russian operators, which had seemingly managed to flip service orientations and capitalise on the loss of capacity from other modes coming in by dint of sanctions, 2024 has exposed its dependence on China.

But now, alongside the delayed and dwindling capacity from Chinese operators, shippers also look set to contend with a 22% spike in rates, as RZD looks to impose a tariff hike.

President Putin’s nuclear rhetoric has also, reportedly, unnerved the Chinese leadership. There are suggestions it is further distancing itself from the Ukraine invasion, although the Iran-Russia friendship appears to have remained firm, with implications for rail freight.

Iranian minister of finance and economic affairs Abdolnaser Hemmati said both sides were “determined” to finish the International North-South Transport Corridor (INSTC).

“We called on President Putin’s aid to invite the countries on the way of the project to Iran, in order to achieve the desired result for implementing this corridor as soon as possible,” Mr Hemmati told media.