Russian rail freight is suffering from the ongoing diesel shortage. Prices have more than doubled. The impact is extensive: 80% of Russian rail freight uses diesel traction at some point during its journey. Companies with industrial sidings are now turning to the energy ministry to secure priority supply.
The impact of the fuel crisis in Russia should not be understated. Before entering Russian Railways’ (mostly) electrified mainline network, trains are formed on non-electrified industrial sidings. 80% of freight passes these industrial tracks, according to Russian media. The availability of affordable diesel remains a key requirement for rail operations on this infrastructure.
Even though the association for companies with industrial sidings is requesting priority provision of diesel fuel, the primary issue is not a lack of supply, say Russian media. Rather, the higher prices threaten the continuity of these rail operations.
The price of diesel fuel reached 150 to 180 rubles (€1.68 to €2.02) per litre in some regions. This is more than double the price of the beginning of 2026. For shunting operations in Russia, this is a major financial setback. Long-term contracts and set tariffs often determine revenues (and therefore profit margins), say Russian media. The affected companies cannot easily pass on these costs to their customers. Instead, they often carry the burden themselves.
Russian experts fear that these companies will start saving money on maintenance of both infrastructure and rolling stock to be able to afford fuel. In due time, this could lead to reduced throughput capacity and delays.
Targeted measures necessary for shunting
Meanwhile, Moscow has already taken measures to ensure domestic nationwide diesel supply. The government has banned fuel exports and has started importing fuel from India. Still, this may lead to more supply on the market as a whole, but does not guarantee supply for industrial sidings in particular. Russia needs to engage in more micromanagement to make sure that rail freight operations can keep going at a financially sustainable level.
Moscow also acknowledges the shortage of fuel — although Russian media steadfastly ascribe this to “repairs at oil refineries” without naming the cause for these repairs: Ukrainian drone strikes.
Earlier, Russian Railways (RZD) launched a special task force to keep oil supplies going. The team was tasked with guaranteeing the “stable acceptance of oil freight for transportation with consideration of the operational circumstances”, announced RZD in June.
“RZD is flexibly adapting to the changing conditions in tight cooperation with oil companies and is ready to promptly adjust its operating procedures”, the rail operator added at the time.