Template-Type: ReDIF-Article 1.0 Author-Name: Andrey Makarov Author-Name-First: Andrey Author-Name-Last: Makarov Author-Workplace-Name: Gaidar Institute for Economic Policy Title: The current situation and some key trends and challenges in Russia's transport sector in 2025 Abstract: By the end of 2025, the Russian transportation system will see a slight decline in transportation volumes. Freight turnover for all modes of transport in January-September 2025 decreased by approximately 1-2% with a slight reduction in freight volumes, reflecting a contraction in demand for logistics against the backdrop of high rates and a slowdown in economic growth. In the meantime, there's been a shift in traffic to the eastern and southern corridors, with seaports in the Far East basin playing a bigger role. The passenger segment is showing mixed dynamics: total passenger traffic for the first nine months of 2025 reached approximately 7.6 billion people, with growth in certain segments, but air traffic is showing a slight decline (2–4%). There is a growing trend towards digitalization (TMS, platforms, AI routing), market consolidation around major players, and the development of regional transport connectivity through large-scale government investment in the transport industry (approximately Rb1.5 trillion in 2025 and another Rb6 trillion by 2028). Classification-JEL: L9, L91, L92, L93, R41 Keywords: Russian economy, transportation sector Year: 2025 Issue: 29 Month: December Pages: 4 File-URL: https://www.iep.ru/files/RePEc/gai/monreo/monreo-2025-29-1473.pdf File-Format: application/pdf File-Function: Revised Version, 2025 Handle: RePEc:gai:monreo:monreo-2025-29-1473