Message from the Chief Executive Officer – Chairman of the Management Board of Russian Railways

Dear partners and colleagues,

At Russian Railways, the year 2024 was marked by the 50th anniversary of the start of construction on the Baikal—Amur Mainline (BAM), as we focused on preserving railway traditions. These two topics are tightly linked together because the labour enthusiasm of BAM construction workers, their camaraderie, close‑knit families which were started despite most challenging living conditions, and responsibility for Eastern Siberia’s unique nature — all of that was included in our corporate priorities and became an integral trait of true railway workers, professionals who value their heritage and look out into the future.

Strategic development – pivot towards sustainability

Despite external challenges, we were plowing ahead and working to implement Russia’s national projects in line with the Russian President’s Decree of 2018.

One of Russia’s strategic development objectives through 2024 – upgrading and expanding core infrastructure – was achieved within the scope of responsibilities assigned to Russian Railways.

We completed the second stage of the Baikal‑Amur and Trans‑Siberian Mainlines upgrade projects, ensuring the capacity of the Eastern Operating Domain at 180 mt annually. The carrying capacity of almost 146 mtpa was achieved across mainlines serving ports of the North‑Western Basin.

The Company’s 2024 investment programme hit a record high of RUB 1.48 tn. We upgraded the existing and built a new core infrastructure, increased the throughput capacity and transport accessibility, created and introduced our own digital solutions and services. We launched new routes and developed tourist, high‑speed, and suburban transportation, creating most comfortable conditions for all passenger categories.

In 2024, we adopted the first Sustainable Development Policy of the Russian Railways Group, which is a strategic benchmark emphasising our commitment to balanced and responsible business conduct for the sake of future generations.

Care for people – a major priority

Social support for employees and their families is a major railway tradition. In 2024, we did two rounds of salary indexation, not only honouring our commitments, but also strengthening social guarantees set forth in the Collective Bargaining Agreement.

We continued developing our corporate healthcare system and physical training and sports initiatives. In the reporting year, over 11,000 events were held as part of the target Healthy Lifestyle programme, reaching more than 2.6 million employees and their family members. Russian Railways supports young professionals and representatives of multigenerational railway families, and helps women unlock their career potential. For example, the number of women working as operators and assistant operators of rolling stock increased four times as compared to 2023.

Our efficient process safety management system helps us be consistent in ensuring adequate labour conditions and annually decrease occupational injury rates. Since the inception of Russian Railways, the general injury rate went down by 10 times, and the fatality rate – by 8 times. In 2024, we improved labour conditions for almost 47,000 workplaces, with the number of hazardous workplaces significantly reduced.

We were traditionally focused on social infrastructure, opening kindergartens and upgrading cultural, sports, and healthcare facilities in the regions of our operation.

In the forefront of green solutions

The Company is doing a lot to protect the environment. Our Environmental Strategy updated in 2024 seeks to reduce the environmental footprint of Russian Railways’ operations, decrease carbon intensity, ensure sustainable use of natural resources, and enhance environmental safety. Through the implementation of the Environmental Strategy, we have achieved tangible results over the recent years.

The carbon intensity of the Company’s operations went down by 12% since 2019. This was mostly driven by a high degree of electrification of Russian Railways’ infrastructure, with more than 51% of the total operating length of railways electrified.

The Company cut its pollutant emissions from stationary sources by more than 30% since 2019.

A pillar of our Environmental Strategy is the sustainable use of water resources. In 2019–2024, Russian Railways reduced its water consumption by almost 24%, with wastewater discharges falling by 40%.

The environmental initiatives planned as part of construction and reconstruction of Baikal‑Amur and Trans‑Siberian Mainlines infrastructure facilities were implemented in full. Russian Railways initiated the adoption of a new environmental action plan for Lake Baikal’s natural territory for 2025–2032.

Responsible governance – consistency and transparency

In 2024, Russian Railways’ Board of Directors strengthened its ESG focus by expanding the Strategic Planning Committee’s mandate to include sustainability matters.

Russian Railways received an ESG rating of A from RAEX as a recognition of its high maturity in managing environmental, social, and governance risks. The Agency notes with respect to environmental factors that the Company shows strong efficiency in mitigating risks associated with pollution and waste management, has a well‑established practice of corporate social responsibility, cares for its employees and offers them competitive benefits. They also recognise an improvement in occupational injury rates.

Let me extend my gratitude to all the colleagues for their efforts, partners for their trust, and veterans for having created a solid foundation for our success. Together we will follow the track of sustainability, proud of our past and confident about our future.

Chief Executive Officer – Chairman of the Russian Railways Management Board