The Moscow Times reported that Russian Railways expected a loss of RUB 49.7 billion this year compared with a profit of RUB 13.4 billion in 2008 and that it planned to shed 53,700 jobs.

A company spokeswoman told The Moscow Times that the state railway monopoly had a loss of RUB 26.8 billion in Q1 as falling economic activity took a toll on its freight volumes. Russian Railways, or RZD, forecasts a loss of RUB 14.2 billion in the second quarter.

Mr Vladimir Yakunin CEO of RZD in February said the company would finish this year at best with zero profit and in the worst scenario we will get losses. He said that Russia was only at the beginning of the economic crisis.

The company reaffirmed that it hoped to limit its falling cargo volume to 19% this year, even after it transported 27% less cargo in the first quarter, YoY. The drop in cargo turnover has been decreasing, with a 15.8% fall in March compared with a year earlier. In February, it fell 26% and in January 32%.

Mr Fyodor Andreyev senior vice president said "For now, our forecast seems justified. We're being hit hardest by the situation in the metals and construction sectors."

The Economic Development Ministry forecasts a 2.2% contraction of gross domestic product this year after a liquidity crisis hit the company's banks and property developers last fall and plummeting commodities prices made large swaths of Russia's metals and mining industry unprofitable.

The company said many of the new job reductions would affect people retiring, joining the military or taking maternity leave. A hiring freeze was imposed in November and the following month, RZD said it would lay off roughly 10,000 office workers out of its 1.3 million total staff.

(Sourced from The Moscow Times)