The President of the Federation Council Valentina Matvienko warns that Russian Post faces a deepening financial deficit and calls for a thorough review of the situation. She raised the issue during a meeting with Maxim Reshetnikov, head of the Ministry of Economic Development.
She described theCurrent financial state as very troubling and urged action. A broad analysis is proposed to uncover other problematic processes that may require involvement from law enforcement or other agencies. The financial gap at the postal service is widening, and there is a sense that no one is taking decisive steps to address it, Matvienko said.
Matvienko emphasized the need for a precise financial model that could sustain the business. She warned that shelving the issue would be unacceptable and that the financial hole could turn into a massive pit if left unchecked.
Reshetnikov acknowledged that the financial difficulties of Russian Post cause serious concern. He noted that the government is weighing options to provide a stable revenue stream, including an infrastructure payment in favor of Russian Post to balance its economy. He outlined two potential paths for the state: the budget could take on the maintenance obligations, or marketplaces could support the company directly.
Reshetnikov mentioned that the government is considering an infrastructure payment and stressed the need for calculations to determine what Russian Post can guarantee. A plan for financial recovery is essential to justify any such payment.
The issue first drew attention from Gennady Ordenov, a member of the Federation Council Committee on Agricultural and Food Policy and Environmental Management. Ordenov said that support for Russian Post requires a concrete solution and that options include infrastructure payments for marketplaces worth up to 28 billion rubles a year or establishing uniform delivery rules for goods from marketplaces. He pointed out that the post office operates under a license and must meet regulatory requirements, while marketplaces and online stores can create alternative delivery networks in profitable locations and may need to coordinate with the postal service.
Tense Situation
In the first half of the year, Russian Post showed some improvement in its finances, though the situation remained tense. This assessment came from Mikhail Volkov, the general director of the company, during a briefing with reporters.
Volkov noted reductions in operating losses by nearly two thirds and the reopening of many branches that had been temporarily closed. He added that the rural and remote network includes about 27 thousand branches, which remains essential to many communities, but maintaining these outlets requires ongoing, predictable support.
Volkov also observed that most products carried by the company still operate with negative margins and that the mission is largely social in nature rather than profit driven.
Mail Indicators
Over the past decade Russian Post has seen a revolving door of leadership, with several changes reshaping its operations. These shifts have helped shorten mail delivery times and improve customer service quality, though some financial pressures persist.
In 2020 the company reported revenue of about 210.7 billion rubles under IFRS with a net profit of 3.4 billion rubles. Around 108 million packages were delivered from Russian online retailers, and most large marketplaces connected to the system. By 2021 revenue rose to roughly 228.1 billion rubles with a net profit near 1.5 billion rubles. Digital revenue climbed by about 42 percent, reaching 52.8 billion rubles.
2022 marked a downturn with a loss of 27 billion rubles and revenue dipping to 208.4 billion rubles as expenses grew. The company cited challenges such as interruptions from sanctions, payment difficulties, and transportation constraints that reduced the flow of international mail both inbound and outbound.
In early 2023 Mikhail Volkov took the helm as CEO after previously leading a national lottery operation. A key objective of the crisis team under his leadership has been to lift performance and increase revenue through targeted reforms and operational improvements.
Note to readers: figures and strategic options reflected here are based on public statements and planning discussions reported by senior officials and company executives. Market responses and policy decisions may evolve as the government and the company assess long term arrangements and funding mechanisms to support postal services and delivery networks across the country, including coordination with e commerce platforms and marketplace operators. Attribution: government briefings, company statements, and policy discussions as reported by regional press and industry observers.