Ukraine Widens Drone Campaign Against Russian E-Commerce Giant Ozon

Ukraine has expanded its drone offensive against Russian online retailers, targeting six logistics hubs operated by Ozon, the country's second-largest e-commerce platform, over the past three days. The strikes mark a significant escalation in Kyiv's campaign to disrupt Russia's economic infrastructure and undermine its war financing.

Ozon confirmed that a drone attack set its logistics hub in Makhachkala, Dagestan, ablaze, halting operations and injuring several people. A fire also broke out at a facility in Enem near Krasnodar, while workers were evacuated from warehouses in Adygeysk and Nevinnomyssk, though those sites escaped damage. Earlier strikes halted operations at Ozon centres in the Samara and Orenburg regions, with over 300 people evacuated from the latter.

The attacks sent Ozon's shares tumbling nearly 30% on the Moscow Exchange on Monday. Shares in AFK Sistema, its major shareholder, fell more than 13%. Prior to the strikes, Ozon had been one of Russia's best-performing stocks, having risen nearly 300% since the market turmoil following the 2022 invasion of Ukraine.

Until recently, Kyiv had focused its e-commerce strikes on Wildberries, Ozon's main rival. The sector is one of the few fast-growing parts of Russia's economy, which has otherwise stagnated after more than four years of war. Ukraine's broader campaign has also targeted oil refineries, causing fuel shortages and long queues at Moscow petrol stations.

In response, Russian President Vladimir Putin has promised state assistance to rebuild warehouses "at a new technological level." The Finance Ministry said it has prepared measures, including tax breaks for up to a year, to support Wildberries and small businesses affected by the attacks. Wildberries owner Tatyana Kim welcomed the support, saying, "We keep on working."

Analysts note that Ozon may face greater financial strain than Wildberries, as its main shareholder, AFK Sistema, carries significant debt and is unlikely to provide substantial backing. Ozon, which grew from an online bookstore and raised $1 billion in a 2020 IPO, was previously listed on Nasdaq until 2023. The European Union imposed sanctions on financial units of both Ozon and Wildberries in July, though Ozon says its unit operates only within Russia.