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Ukrainian drone strikes on Wildberries disrupt Russia’s retail sector

Ukrainian drone strikes targeting warehouses of Russian e-commerce giant Wildberries have disrupted its logistics network, sharply affecting thousands of small businesses and franchise operators across Russia, according to media reports.
Since July 18, around 20 Wildberries facilities have reportedly come under attack, with several warehouses suffering major fires and extensive damage. According to  Reuters at least 1.18 million square metres of storage space—more than a fifth of the company’s total capacity—has been damaged or destroyed.The disruption has hit Wildberries’ network of 98,000 pick-up points in Russia and neighbouring countries. Vasily Klimov, who operates a Moscow pick-up outlet, said deliveries to his shop had fallen to around 150 parcels a day from about 400 previously, cutting sales by nearly half and turning the business loss-making.“Ukrainian attacks have brought the costs of the war directly into Russia’s retail economy.”

The attacks have also affected tens of thousands of sellers dependent on Wildberries for online sales. Fashion retailer Finn Flare reportedly lost goods worth more than 100 million roubles ($1.24 million) when a fire broke out at the company’s Elektrostal warehouse east of Moscow. An artisan confectioner also reported losing hundreds of boxes of handmade sweets.Ukraine has said the strikes are aimed at raising the economic cost of Russia’s war and “bringing the war home” to ordinary Russians. It has also accused Wildberries of supporting the Russian war effort, citing products such as helmets, ammunition pouches and night-vision equipment sold through the platform. Wildberries and the Kremlin deny that the company supplies the military.
According to media reports,at least 13 people have reportedly been killed in the warehouse attacks. Russia, meanwhile, has carried out strikes on commercial warehouses in and around Kyiv, alleging that some were being used to store drone components and other dual-use goods.The impact could extend beyond individual businesses. Wildberries and other e-commerce platforms account for goods and services equivalent to about 8.5% of Russia’s economy.
Russian Central Bank Governor Elvira Nabiullina said the bank was monitoring whether supply disruptions caused by the attacks would add to inflationary pressures. Economist Elina Ribakova warned that supply shocks could complicate efforts to reduce interest rates, currently at 14%, particularly as Russia’s economy faces weak growth and persistent inflation.Sberbank has also warned that the attacks could weaken the credit quality of online retailers and sellers. Around 300 companies were reportedly seeking loan restructuring, raising fears of a wider wave of business failures.The Kremlin has discussed possible support for Wildberries and its sellers, including state-backed loans, tax relief and subsidies. The company said it had increased discounts, offered payment deferrals and made voluntary compensation payments to more than 97,000 sellers who lost stock.However, the damage is already forcing some operators to exit. More than 3,100 Wildberries franchised pick-up points were reportedly listed for sale on Russian online marketplace Avito. Klimov, struggling to keep his Moscow outlet afloat, has also put his business up for sale—even jokingly offering it for just one rouble.

 


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