January 20, 2026

Cargo Business Breaks Down


Cargo Business Breaks Down
An old International Newport COE tractor-trailer in Russia. Druschba 4, Wikimedia Commons.

According to Izvestia, nearly 7,000 carriers in Russia are on the brink of bankruptcy. Independent outlet Okno reports that the crisis is being driven by a broader industrial slowdown, higher fuel prices, rising leasing payments for trucks, increased maintenance costs, a high central bank key rate, and a growing recycling fee.

"In recent months, working has become almost impossible," said Oleg, a long-haul truck driver from the Kirov Oblast. "Diesel fuel prices have surged and are now almost the same as gasoline. Weight control checkpoints have been installed on highways, and they are impossible to avoid. Spare parts prices have jumped, and deliveries can take up to two months. Under these conditions, the business is simply no longer profitable."

Small trucking businesses are going bankrupt en masse, according to posts in the online trucking community Dalnoboy – Moya Zhizn (Long-Distance Trucking Is My Life). Leasing companies do not forgive payment delays and quickly repossess idle trucks, often buying them back at half or even a third of their market value. The companies that remain in operation are "essentially working just to cover fuel and food," hoping for an improvement that has yet to materialize.

"The market is oversaturated," Oleg said. "There used to be fewer carriers and more cargo. Now it’s the opposite. Selling trucks is an option, but finding buyers today is extremely difficult."

Economist Yevgeny (name changed to protect the source) attributes the decline in freight volumes to overall economic slowdown. Costs are rising while profits are shrinking, he said, leading manufacturers to reduce output and sharply cut demand for transport services.

Experts note that the transport system is deeply interconnected. A decline in rail freight, for example, reduces the need for trucks that haul cargo to rail terminals. Truck drivers are also affected by mobile internet outages, which disrupt payment systems. Sergei, a truck driver employed by a St. Petersburg-based company, said connectivity problems have resulted in fines for unpaid Platon, a toll system designed to compensate for damage caused by heavy trucks.

Authorities are now considering expanding the Platon system to regional highways, not just federal roads. "This won’t improve the roads; it will just mean more fees," Sergei said. 

The crisis has also hit large transport firms. Georgy Polyansky, founder of freight company Furgonof, said he was forced to shut down his business in June last year after 15 years in the industry, leaving behind multimillion-ruble debts.

"I was afraid to continue," Polyansky said. “We had already suffered irreversible losses. There was a real risk of failing clients and losing cargo. At that point, we could no longer pay drivers’ salaries, taxes, or fuel."

His company transported household appliances, clothing, footwear, sporting goods, and cosmetics across Russia. Freight rates began to fall sharply in August 2024 and did not recover by the start of 2025, contrary to carriers’ expectations. 

The crisis will only deepen, Yevgeny said, predicting a return of the shadow economy. "Ten years ago, up to 90% of the freight market operated in the gray zone. The same thing will happen again. Companies will avoid taxes, including VAT, and informal arrangements will spread. The shadow sector will grow, among both shippers and carriers."

You Might Also Like

A Thumbs Down, If You Could
  • January 12, 2026

A Thumbs Down, If You Could

Russian authorities have been pushing a "national messenger" app on citizens for a year. Now that it's out, many are avoiding it.
Like this post? Get a weekly email digest + member-only deals
[INVALID]
[INVALID]

Some of our Books

The Samovar Murders
November 01, 2019

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.

A Taste of Chekhov
December 24, 2022

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.

93 Untranslatable Russian Words
December 01, 2008

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

Little Golden Calf
February 01, 2010

Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
Stargorod: A Novel in Many Voices
May 01, 2013

Stargorod: A Novel in Many Voices

Stargorod is a mid-sized provincial city that exists only in Russian metaphorical space. It has its roots in Gogol, and Ilf and Petrov, and is a place far from Moscow, but close to Russian hearts. It is a place of mystery and normality, of provincial innocence and Black Earth wisdom. Strange, inexplicable things happen in Stargorod. So do good things. And bad things. A lot like life everywhere, one might say. Only with a heavy dose of vodka, longing and mystery.

Life Stories
September 01, 2009

Life Stories

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955