The freight railways of the former Soviet Union, twenty years on: Reforms lose steam

Some of the countries of the former Soviet Union have taken steps toward reform of the vertically integrated monopoly freight railways that they inherited following the breakup of the USSR, while in others there have been discussions but nothing more. However, even in the countries most active in reform – Russia, Kazakhstan, the Baltic countries – the reforms have taken directions different from the reform models adopted in either Europe or the Americas, and governments have insisted on maintaining a significant degree of control of the sector, resisting any real yielding to the vagaries of markets. Furthermore, when there has been concessioning or sale of assets to private firms, these events have been marred by allegations of favoritism and discrimination. In recent years, reform momentum throughout the region has stalled, with policy discussions now more often focusing on ways to improve efficiency and increase traffic – especially lucrative transit traffic – with less emphasis on either competition or privatization.