1 month ago
Ukrainian Drone Attacks on Wildberries Strike at Russia's Economic Heart
Ukraine and Russia are fighting a war.
Ukraine sent drones to hit big storage buildings in Russia.
These buildings belong to Wildberries, a very large online shop in Russia.
People order clothes, toys, electronics and many other things from Wildberries.
The drones started fires and destroyed huge amounts of goods in the warehouses.
Because of this, many orders stopped arriving and lots of small businesses are losing money.
One man who runs a package pick-up shop said his sales dropped by about half, and he is trying to sell his shop.
At least 13 people died in these warehouse attacks.
Ukraine says the attacks are meant to make the war more expensive and painful for Russia.
Russia says it also hit warehouses near Kyiv because it claims they were used to store military items.
Many shops that sold their goods through Wildberries are hoping to get money back for what they lost.
Since July 18, Ukraine has launched near-nightly drone attacks on around 20 Wildberries sites across Russia, sparking major fires and destroying stock.
Satellite imagery shows at least 1.18 million square metres of storage space — more than a fifth of Wildberries' capacity — has been damaged or destroyed.
At least 13 people have been killed in the warehouse attacks; Ukraine denies targeting civilians and says it aims to 'bring the war home' to ordinary Russians.
Russia this week killed at least 17 people in strikes on commercial warehouses in and around Kyiv, alleging they stored drone components and other dual-use goods.
The disruption has cut pick-up point sales by about half, with over 3,100 franchised Wildberries points listed for sale and Sberbank warning it may increase loan-loss provisions.
- Who
- Ukraine's military, which carried out the drone strikes; Wildberries, Russia's leading e-commerce retailer; franchise operators such as Vasily Klimov; central bank governor Elvira Nabiullina and lender Sberbank, which are monitoring the economic fallout.
- What
- A wave of drone attacks on Wildberries warehouses across Russia that destroyed stock, killed at least 13 people and severely disrupted the country's e-commerce logistics network.
- Where
- Across Russia, including the Elektrostal warehouse east of Moscow; Russia separately struck commercial warehouses in and around Kyiv, Ukraine.
- When
- Since July 18, over roughly three weeks leading up to the August 7 report.
- Why
- Ukraine says the strikes aim to 'bring the war home' to ordinary Russians and raise the cost to Moscow of continuing the conflict, and that Wildberries supports Russia's war effort; the company and the Kremlin deny it supplies the army.
Ukraine's stance
Russia's stance
Legitimacy of targeting Wildberries
Ukraine's stance
Wildberries supports Russia's war effort by stocking and selling items such as night-vision goggles, ammunition pouches and helmets, so its warehouses are legitimate targets meant to raise the cost of the war for Moscow.
Russia's stance
Wildberries does not supply the Russian army, and attacks on commercial warehouses kill civilians and harm small and medium-sized businesses that have 'absolutely nothing to do with the war.'
Strikes on commercial warehouses near Kyiv
Ukraine's stance
Russia says its strikes on commercial warehouses in and around Kyiv, which killed at least 17 people, targeted sites allegedly storing drone components and other dual-use goods with military as well as civilian applications.
Russia's stance
Ukraine denies targeting civilians and says the warehouse strikes are part of a campaign to 'bring the war home' to ordinary Russians and raise the cost to Moscow of continuing the conflict.
Economic damage to Russian businesses
Ukraine's stance
Raising the economic cost of the war is the aim; economist Elina Ribakova says the supply shock could force Russia's central bank to slow or stop interest rate cuts even as the economy stagnates.
Russia's stance
The damage is hitting small businesses with no connection to the war, and a source close to the Kremlin warns of 'a wave of bankruptcies' that would be 'a significant blow to the economy.'
Key facts
- Company hit
- Wildberries, Russia's leading e-commerce retailer
- Attacks began
- July 18
- Sites attacked
- Around 20 warehouses across Russia
- Storage capacity damaged
- At least 1.18 million square metres (over a fifth of capacity)
- Reported deaths
- At least 13 people killed in the warehouse attacks
- Sellers compensated
- More than 97,000 sellers received initial voluntary compensation
- Pick-up points for sale
- Over 3,100 listed on Avito
- Finn Flare losses
- More than 100 million roubles ($1.24 million) in stock destroyed
Quotes
Marina Drozhzhina
E‑commerce director of fashion brand Finn Flare
“"I simply do not have enough financial reserves to hold out."”
theprint.in
“"Since available inventory decreased, orders also fell."”
theprint.in
Sources
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