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

Marooned in Moscow
May 01, 2011

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.

Steppe
July 15, 2022

Steppe

This is the work that made Chekhov, launching his career as a writer and playwright of national and international renown. Retranslated and updated, this new bilingual edition is a super way to improve your Russian.

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.

Survival Russian
February 01, 2009

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.

The Little Humpbacked Horse
November 03, 2014

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.

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.

Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

A Taste of Russia
November 01, 2012

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.

How Russia Got That Way
September 20, 2025

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.

Murder at the Dacha
July 01, 2013

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.

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.

 

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