cross-posted from: https://mander.xyz/post/45242789
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Russian Railway, which operates approximately 85,000 km of railway, is going through a crisis that has prompted Russian authorities to consider exceptional measures to avoid default, according to an analysis published by Europa Liberă. ...
Russian Railways’ total debt has reached approximately 4 trillion rubles (equivalent to about USD 50–51 billion, EUR 43 billion), at a time when revenues have been affected by the slowdown in the war economy and the highest interest rates in two decades.
The company, which has approximately 700,000 employees, is heavily exposed to state-owned banks, particularly VTB, and its inability to meet its financial obligations could have a knock-on effect on the Russian banking system, several analysts warn.
“This crisis at Russian Railways is one of the factors contributing to accelerating inflation in the Russian economy,” said Russian economist Igor Lipsiț, quoted by Current Time. According to him, falling revenues, rising tariffs, and inflationary pressures directly affect the population and companies dependent on rail transport.
The war in Ukraine, a systemic shock for the rail operator
The invasion of Ukraine was a systemic shock for Russian Railways. The prioritization of military transport, imposed by the government starting in 2024, has seriously affected trade flows and the punctuality of civilian deliveries.
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In an attempt to stabilize the financial situation, the Russian government has ordered the sale of the Moscow Towers office complex, a 62-story building in the Moscow City financial district, purchased by Russian Railways in 2024 for approximately 193 billion rubles (about USD 2.4 billion), according to the Ukrainian portal UNN.
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The Moscow authorities are considering several options to support the company, including:
- increasing freight transport tariffs;
- increasing state subsidies;
- tax cuts;
- using reserve funds;
- converting part of the debt into shares, which would give state banks direct stakes in the company.
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I'm not going to defend anything here, but at least with the Americans, you can say their invasions serve their own self-interest. But at this point, why not just stop? Who is this serving at this point? Let's say they get Ukraine tomorrow, then what? They're going to need decades to recover from this.
The more I think about it, the less I understand. At least with Trump it's simple. Use power to get more money. Destroy the EU, do what you want. Etc.
Putins reign relies on him being perceived as a Very Strong Man who can not be defeated. If russia is defeated in a war then his image as a Very Strong Man will crumble.
In order for Putin to remain in power he has to win this war at all costs.
The inferiority complex of the Gremlin from the Kremlin must be nourished with megalomanic fuel.
Because it would be a "defeat", and after pouring so much into the war, they don't want to seem like it was just wasted.
Maybe.
Sunk cost fallacy.
And also those in power are surely still doing pretty fine.
IDK; the USA just has a longer way to go down yet, economically. Look at Russia and think: this is where we'll be in X years if nothing changes.
Also America fights wars away from their country, not adjacent. Wars are less visible (not invisible though), affect current affairs less.
Seems like Putin doesn't care if it is a pyrrhic victory.