Russia’s bold privatization plan puts city transport in private hands

From public to private: Putin’s sweeping decree forces cities to sell off transport fleets. Will profit-driven owners fix failing systems—or deepen the crisis?

, and Administrator

2025 November 8 . 9:27 PM

1 min read

In the image we can see there are people who are standing and beside there is a cafe on which it's... — In the image we can see there are people who are standing and beside there is a cafe on which it's written "Ruskin's Cafe".

Russia’s bold privatization plan puts city transport in private hands

The Russian government is pushing ahead with a significant shift in public transport. The Federal Ministry of Transport has proposed transferring city transport companies, along with their entire fleets, to private ownership. President Vladimir Putin has ordered the privatization of all municipal enterprises that are not monopolies.

Yekaterinburg, Russia's fourth-largest city, is set to be one of the first to comply. The mayor's office plans to partially merge, privatize, and convert municipal enterprises to meet the presidential decree. However, not all regions are eager to follow suit. Many are hesitant due to recent improvements in oversight under municipal ownership.

One of Yekaterinburg's most loss-making municipal assets, Gortrans, the city's public transport operator, is among those slated for privatization. In 2024, its debt increased by a staggering 4.4 times. After the privatization, the company will be owned by the private entity 'TransGlobal Holdings.'

The privatization of municipal transport companies is set to reshape the landscape of public transport in Russia. While some regions are embracing the change, others remain cautious. The future of Gortrans, Yekaterinburg's loss-making public transport operator, now lies in private hands.