Russia's Amazon-Style Retailer Hit Hard by Ukraine Drone Campaign

Wildberries, Russia's largest online retailer, is facing significant disruptions to its logistics network after a wave of Ukrainian drone attacks knocked out over a quarter of its warehouse capacity.

The campaign, which began on July 18, has repeatedly targeted facilities where merchants' goods are stored before being shipped to customers. As a result, 14 warehouses covering more than 1.5 million square meters have been put out of operation, equivalent to about 27% of the company's total warehouse space.

The attacks could drive up Wildberries' costs, delay deliveries, and weaken its grip on the market. The company has not published a comprehensive estimate of the damage caused by the strikes, but early assessments suggest that the financial impact could be substantial.

Analysts say the attacks are unlikely to pose a serious threat to Russia's wider economy. However, a prolonged campaign could erode the company's market share and create damaging optics for the Kremlin. According to economist Dmitry Nekrasov, even if Wildberries pays partial compensation to affected sellers, the losses could slow activity on the platform.

The Russian government has said it is preparing measures to support affected sellers, including potential compensation based on the cost of goods destroyed. If the government were to cover losses near the midpoint of an estimate cited by Forbes Russia, compensation could cost about 250 billion rubles ($3.08 billion), which would be significant but not transformative for the wider economy.