Kremlin says Russian online retailer Wildberries suffered losses in warehouse attacks
MOSCOW, July 21 (Reuters) – Online retailer Wildberries, Russia’s answer to Amazon, and traders trading through it are struggling with losses following Ukrainian attacks on warehouses operated by the retailer, the Kremlin said on Tuesday.
Drones targeted two major logistics centers in the cities of Kotovsk and Elektrostal on Saturday. The strikes killed eight workers, broke out fires and disrupted operations of Wildberries, Russia’s largest online retailer, which can handle more than 20 million orders a day.
While the extent of the damage remains unclear, the attacks on a company so central to the consumer economy appear to signal an expansion of Kiev’s strategy of using long-range drones to disrupt Russia’s war effort and pressure the Kremlin to make peace.
Kremlin spokesman Dmitry Peskov told reporters about the attacks: “The situation is really difficult due to the losses suffered by both the company and representatives of small and medium-sized businesses.”
He denied Ukraine’s accusations that Wildberries was supplying military equipment.
Wildberries started as an online store selling clothes from European catalogues. It has since expanded its product offering and evolved into a marketplace that includes third-party sellers. Wildberries did not comment on the extent of damage.
TRANSITION TO ONLINE RETAIL
On Monday, founder Tatyana Kim said the company was aware of many issues regarding compensation for damaged goods at the Elektrostal plant, but needed more time to assess the impact of the attacks. He did not say when the site would open.
The Kotovsk facility will continue to accept deliveries on July 23 and goods stored there will return for sale, it said in an online post.
Turkish retailer Koton Retailing said on Tuesday that some of its stock was affected by damage to Wildberries fields.
Any prolonged disruption to Wildberries’ operations is likely to be felt by many in Russia. With more than 1 million sellers, the company is one of the main forces behind the rapid shift to online retail across the country.
Online sales across Russia will grow 28% to 11.5 trillion rubles ($147 billion) in 2025, according to the Association of Internet Commerce Companies. Deputy Prime Minister Alexander Novak said that sales of goods and services on digital platforms are equal to about 8.5% of GDP.
Ukraine’s attacks on energy infrastructure have already affected daily life across Russia, prompting authorities to intervene to support the local fuel market after shortages triggered hours-long queues at gas stations and sparked public unrest.
Peskov said the government was in contact with Wildberries regarding the attacks and was helping to resolve the issues.
In the “We sell at WildBerries” group on the Telegram messaging app, some members discussed how sales would be handled while the two warehouses were closed.
Others discussed why Ukraine targeted Wildberries. “Retaliation for its own warehouses,” wrote one person who suggested an explanation for the attack, adding that Ukraine might be trying to deal “a blow to (Russia’s) economy in terms of GDP and employment.”
Russia has repeatedly targeted Ukraine’s postal sites and energy infrastructure since launching its full-scale invasion in early 2022.
($1 = 78.3705 rubles)
(Reporting by Dmitry Antonov, additional reporting and writing by Alessandra Prentice; Editing by Mark Trevelyan and Aidan Lewis)
