Russia Freight Transport and Shipping Report Q2 2016

Russia Freight Transport and Shipping Report Q2 2016

BMI View: Our outlook for the Russian freight transport sector is one of cautious optimism. We anticipate that volumes across freight transport modes will return to growth in 2016 following two or more years of volume contractions. However, with the economy set to endure another year of recession, and a chance that Western sanctions might not be lifted in the middle of the year, there is downside risk to our projections. We forecast an improvement on Russia's trade outlook for 2016 on the bleak estimates for 2015. We expect real trade to grow by 5.3% over the next year, compared to a contraction of 12.5% in 2015. Russia's trade outlook for 2016 will be that of moderate growth in light of sanctions by the EU and a further year of economic recession.