Some sources say that the margin of safety is running out and the system has begun to “deflate”. Others say the sanctions have finally taken their toll and the industry has failed to rebuild. It is reported by Railway Supply magazine with reference to Denis Dovgopoly Facebook page.

Russian economy

An interesting situation with RZD. Most of the ways and directions of communication were laid and maintained on the basis of long-term relationships. Everything has been optimized for it. And now everything has changed and Russian Railways simply physically cannot rebuild more than 30% of the directions of transportation. According to some reports, up to 45%. Most of the old consumers have lost demand, and new ones begin to conflict with existing directions. Europe has refused cargo, and Russia cannot transfer even 50% of what they could sell to Asia. You can’t lay new tracks in a week. And military cargo is also a high priority by rail, which slows it down even more. They say that in October transportation will fall by 15% and this is an indicator.

Attack on Kyiv near the railway station

In addition to this, the entire industry “slowed down” due to mobilization. Now in Russia they say that in September a “drawdown” of a few percent is visible, and in October this figure can reach 20%. At some industrial enterprises, production stopped for several days, as more than 30% of the employees went to the military registration and enlistment office. And some industries have simply stopped: in the ports now there is a complete “mess”. Even within the establishment, the number of called-ups is estimated at more than 500 thousand people, and, according to their own estimates for the month, about 10 million people missed at work for at least 3 working days.

Well, against the background of frustration, there is a drop in productivity even for those who work. Estimates are 10-15% for those who work with their hands, 10-15% for those who work with their heads, but with daily KPIs, and up to 50% for those who work from 9 to 18. These are monstrous numbers that will be hidden in statistics, but it would be hard to hide.

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