Ukraine has escalated its aerial campaign against Russia by targeting Wildberries, the country's largest online retailer, with drone strikes that have resulted in casualties and significant damage to its warehouses. The attacks, which began over the weekend, have produced images of massive fires and black smoke billowing from the facilities.
Initial strikes on Saturday hit Wildberries sites in Elektrostal, east of Moscow, and the Tambov region, killing eight people and injuring scores more. Early Wednesday, two additional warehouses in the southern Krasnodar and Stavropol regions were attacked and set ablaze, killing one person and injuring 14 others. These actions are part of Ukraine's effort to disrupt Russia's wartime economy and make its citizens feel the repercussions of the ongoing invasion.
Wildberries, often compared to Amazon, was founded in 2004 and has grown into a dominant force in Russian e-commerce. The platform, known for its purple logo, facilitates sales for hundreds of thousands of businesses by handling storage, shipping, and delivery. In 2021, its founder, Tatyana Kim, acquired a bank that now operates as Wildberries Bank, though it has faced sanctions from the U.K. and the European Union.
According to estimates, the company operates over 200 facilities totaling more than 5.2 million square meters of space, with plans for further expansion into Belarus and Kazakhstan. Wildberries currently accounts for approximately 52% of all online orders in Russia, with an estimated 500,000 to 800,000 sellers utilizing the platform.
Ukrainian President Volodymyr Zelenskyy has stated that attacked facilities were involved in supplying military gear and technical components to the Russian armed forces. However, Kremlin spokesman Dmitry Peskov has countered these claims, accusing Kyiv of striking civilian targets. An examination of the Wildberries website revealed products such as body armor and electronics, some marked with terms related to Russia's "special military operation" in Ukraine, indicating potential dual civilian and military use.
The drone attacks have delivered a substantial blow to many small businesses operating on the Wildberries platform. Merchants have reported the destruction of their inventory stored at the affected warehouses, leading to significant financial losses. While the full extent of the damage is still being assessed, the four targeted facilities represented an estimated 12%-15% of Wildberries' total warehouse space, with potential goods losses reaching as high as $3 billion.
In response to the crisis, Wildberries has offered measures to support affected sellers, including discounts on storage fees, free transfer of goods, and discounted loans through Wildberries Bank. However, the company's updated seller policy exempts it from liability for stock damaged due to "force majeure" events, such as drone attacks. Despite this, founder Tatyana Kim announced that the company had begun making payments to sellers whose inventory was damaged at the Elektrostal site, aiming to support vulnerable entrepreneurs.
The losses come amid other challenges faced by Russian small businesses, including increased taxes, a fuel crisis, and regulatory hurdles, creating what one analyst described as a "perfect storm."