Drone Strikes on Wildberries Disrupt Russia's E-Commerce Backbone

A wave of Ukrainian drone attacks on Wildberries warehouses across Russia has thrown the country's leading e-commerce retailer into turmoil, disrupting supply chains and pushing thousands of small franchise operators to the brink.

Since July 18, attacks on around 20 Wildberries sites have caused major fires, destroyed stock, and damaged at least 1.18 million square metres of storage space — more than a fifth of the company's total capacity, according to a review of satellite imagery.

For Vasily Klimov, who runs a Wildberries pick-up point in Moscow, the impact has been immediate. Deliveries to his outlet have fallen from around 400 parcels a day to roughly 150, and on a recent visit, none arrived. He said sales have dropped by about 50% over the past month, making the business loss-making. He has put it up for sale, jokingly offering it to a reporter for one rouble.

Klimov is not alone. Over 3,100 Wildberries franchised pick-up points are listed for sale on the online marketplace Avito. The company says 95% of orders are collected from such points, which number 98,000 across Russia and neighbouring countries.

The disruption is rippling through the wider economy. Wildberries and other e-commerce platforms handle goods and services worth the equivalent of 8.5% of Russia's GDP. Central bank governor Elvira Nabiullina said the bank would monitor whether supply disruptions translate into higher inflation.

Economist Elina Ribakova of the Kyiv School of Economics said the attacks could complicate the central bank's efforts to lower interest rates from their current level of 14%. "Any small shock could force the central bank either to slow down significantly the cuts or even stop the cuts," she said.

Sberbank, Russia's largest lender, has said it may increase loan-loss provisions after the attacks weakened the credit quality of online retailers and vendors, with about 300 companies seeking to restructure loans. A source close to the Kremlin said many small and medium-sized businesses with "absolutely nothing to do with the war" would suffer, predicting a wave of bankruptcies.

The Kremlin has acknowledged discussions about possible support for Wildberries, including loans from state-owned banks, tax breaks, or subsidies.

Wildberries says it has increased discounts, granted payment deferrals, and made initial compensation payments to more than 97,000 sellers who lost stock. However, some businesses remain sceptical. Fashion brand Finn Flare lost products worth over 100 million roubles ($1.24 million) in a fire at the Elektrostal warehouse. Artisan toffee-maker Anna Starostina, who lost 170 boxes of handmade sweets, said she is not counting on compensation.

At least 13 people have been killed in the warehouse attacks. Ukraine, which denies targeting civilians, says the strikes aim to raise the cost of the war for Moscow. Russia has also launched attacks on commercial warehouses in and around Kyiv, alleging they stored drone components and other dual-use goods.