"We Don't Need You": Russia Shuts Rail Border Crossings with the Baltics and Finland

Russia has unexpectedly closed seven railway border crossings with Estonia, Latvia and Finland, in a move that analysts say carries both political and economic motivations. According to transport experts, the decision was made to strengthen Russia's own logistics network while increasing pressure on neighbouring EU countries.

Early assessments suggest that Russian Railways (RZD) is likely to benefit from the measure, while railway operators and logistics companies in Central Asia could face higher costs and significant disruptions.

A Political Signal and an Economic Calculation

According to Raivo Vare, Estonia's former Minister of Transport and a transport expert interviewed by the Estonian broadcaster ERR, the closure serves several purposes.

"It is clearly intended as a signal. Until now, these railway routes were primarily used to transport goods not subject to sanctions, as well as transit cargo travelling between Central Asia and Europe via Russia."

Vare argues that the decision is intended to both send a political message and redirect freight flows through Russian infrastructure.

A Lifeline for Russian Railways

According to Vare, Russia's ports stand to gain considerably from the closures, as cargo exempt from sanctions, together with freight from Central Asia, will now have to be routed through Russian maritime gateways instead of crossing directly into the Baltic states.

The biggest beneficiary, however, could be RZD itself. The state-owned railway operator has recently faced growing financial difficulties, forcing it to cut jobs and postpone infrastructure projects. By diverting additional freight towards Russian ports, RZD would gain access to higher transport volumes and additional revenue.

Vare also believes the decision sends a clear political message to Russia's Baltic neighbours. "On the other side of the border, we don't need you."

He added that RZD is also facing fuel-related challenges. Much of the cross-border railway network relies on non-electrified lines, making freight operations heavily dependent on diesel locomotives. Older M62 locomotives, still widely used on these routes, consume large amounts of fuel. At a time when Russia is experiencing fuel shortages and has even resorted to fuel imports to meet domestic demand, concentrating freight on domestic routes may also help optimise operations.

Higher Costs for Central Asia

Redirecting freight traffic is far from straightforward. According to Vare, rerouting cargo creates substantial additional costs and disrupts existing supply chains built over many years.

Companies in Central Asia are expected to be among the hardest hit. Instead of moving cargo through Baltic border crossings, goods will now have to pass through Russian ports, increasing both transport costs and transit times.

"For Central Asia, this means higher costs for both imports and exports because railway freight tariffs in Russia have increased, while Russian transport services are generally expensive," Vare told ERR. He warned that the consequences would extend beyond Central Asia itself. "As a result, every company involved in these supply chains will suffer—not only in Central Asia but also on this side of the border, including businesses trading with Central Asian markets."

Lithuania Remains an Exception

Unlike Estonia, Latvia and Finland, Lithuania was excluded from the list of closed railway crossings.

According to Vare, the most likely explanation is Lithuania's continued role as a transit country for freight destined for Russia's Kaliningrad exclave. In addition, the Lithuanian port of Klaipėda remains strategically important for certain Russian cargo flows. It serves as one of the few locations capable of handling freight bound for eastern destinations, while Russian fertilisers—one of the country's key export commodities—also continue to pass through the port.

_{Source: //news.err.ee/}