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๐Ÿ‡ฆ๐Ÿ‡บ Australia /Conflict & Security

Ukraine is attacking 'Russia's Amazon', and it could lead to a bigger prize

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Ukrainian drones have systematically targeted Wildberries, Russia's largest online retailer, over the past four weeks.
  • Kyiv accuses the company of supplying Russia's military and aims to disrupt its economy, which accounts for about 2% of Russia's GDP.
  • Attacks on Wildberries could impact Russia's financial system due to its significant loans from state-owned banks.

Ukraine is intensifying its drone campaign against Wildberries, Russia's equivalent of Amazon, viewing the online retailer as a lucrative target with the potential to destabilize Russia's economy. Over the last month, at least 22 Wildberries facilities have been struck by Ukrainian drones, causing damage, shutdowns, and operational disruptions. Kyiv frames these attacks as "long-range sanctions" aimed at crippling Russia's economy, which is already facing challenges. Wildberries, responsible for approximately 2% of Russia's GDP, has expanded significantly since Western companies withdrew following the 2022 invasion. This expansion has also led to a surge in debt, with the company reportedly taking out major loans from VTB Bank and Sberbank, both majority-owned by the Kremlin. Consequently, any financial distress at Wildberries could trigger a chain reaction affecting these banks and, ultimately, the Russian government. Russian officials deny Wildberries supplies military equipment, despite its website listing dual-use items. Major Robert "Magyar" Brovdi, leading Ukraine's drone strategy, stated that Ukraine will continue targeting Wildberries until recovery becomes impossible, describing ordinary Russian consumers as "addicted" to the company's convenience. Ukrainian presidential advisor Mykhailo Podolyak suggested that Kyiv's attacks would cause "severe defiscalisation" of Russia's economy, which is already showing signs of crisis according to IMF metrics.

It turned out to be a sensitive sensor of the comfort of Russia's massive population, people who consider themselves completely untouched by the actions of the aggressor country.

โ€” Major Robert "Magyar" BrovdiThe commander in charge of Ukraine's drone strategy described Russian consumers' reliance on Wildberries.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.