Russia to spend 130 million euros on railways in occupied Ukraine in 2025

Russia is planning to spend 12,5 billion rubles (around 130 million euros) on railways in occupied Ukraine in 2025. The potential of that infrastructure, according to a Russian economist, depends on future trade with Europe. 
With those 12,5 billion rubles, Russia wants to repair 13.5 kilometres of tracks, replace 16 switches, upgrade communication devices and acquire new locomotives and repair old ones. The investment is a slight increase compared to spending in 2023 and 2024, when Russia allocated 21 billion rubles (around 210 million euros) to railways in occupied Ukraine. It has spent that money on 85 kilometres of tracks, 33 locomotives and a new station in the war-torn city of Mariupol.

In an interview with Russian media, economist Nikolay Kulbaka explained that the Ukrainian railways are mostly being used for construction materials, military freight and oil products.

Potential depends on trade with Europe

Another rail expert highlighted the need to integrate the network in the four occupied provinces with the broader Russian network. That would allow for more reliable freight deliveries into those regions, but it would also relieve an existing railway into Crimea and connect the peninsula via a second railway.

The rail expert added that the railways in the occupied territories could add 12% to 15% in freight loading compared to the current Russian Railways figures. Still, the full potential of the railways in occupied Ukraine would depend on the timeframe for ending the “special military operation”, according to economist Kulbaka.

“The role of these tracks can only become large in the case of a restoration of trade with Europe through this area. But on a horizon of 10 to 15 years that seems an improbable scenario”, the economist concluded.

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