Russian Post faces losses estimated at 24.5 billion rubles, according to a report by Vedomosti that cites audit results from the Federal Treasury. The figures underscore a challenging financial period for the state postal operator as it grapples with profitability issues and mounting costs.
The publication attributes the downturn to internal factors within the group, including problematic decision making by management and inefficiencies that propagate through operations. These root causes have translated into a broader lack of profitability that the company has struggled to overcome.
Part of the deficit stems from a mismanaged retail network and a sales plan that fell short of expectations, contributing to a profit gap of about 10.2 billion rubles. Additional strains come from a rising wage bill across the management apparatus, which climbed by 13 and across group subsidiaries by 186%, culminating in a total hit of roughly 13 billion rubles. The rollout of ten new logistics centers added another heavy blow, with construction costs reaching 21.9 billion rubles.
Beyond personnel and infrastructure costs, the financial picture was worsened by revenue losses tied to IT system inefficiencies, strategic missteps in acquisitions, and expensive, underperforming headquarters projects. These factors collectively eroded potential earnings and heightened the overall budget strain faced by the company.
Alexander Khinshtein, who chairs the State Duma Committee on Information Technologies and serves on the board of Russian Post, described such spending as a form of “rudeness,” underscoring concern about governance and expenditure controls within the enterprise.
A possible route out of the current financial strain involves leveraging funds from the National Welfare Fund (NWF) to cover long-term debts carried by the state-owned enterprise. The reported long-term liabilities of Russian Post exceed 111 billion rubles, with annual debt servicing running around 14–15 billion rubles. Even as the company contends with a budget deficit surpassing 20 billion rubles, the question of debt management and funding sources remains a focal point for policymakers and stakeholders alike.
There have been signals from some of the country’s largest retailers indicating a willingness to engage in arrangements that mobilize infrastructure-related payments in favor of Russian Post. Such moves could influence the company’s liquidity and capacity to stabilize operations, though specifics remain under discussion and contingent on broader economic and policy considerations.