Ukrainian drones hit 'Russian Amazon,' destroying 20 warehouses since July, crippling economy

Ukrainian drones have intensified their attacks on Russian infrastructure, now targeting warehouses belonging to Wildberries, Russia's largest online retailer, often dubbed the "Russian Amazon." Since July 18, approximately 20 Wildberries facilities have been struck, with significant damage reported to multiple large warehouses. Satellite imagery suggests that over 1.18 million square meters of storage space have been destroyed or damaged, representing more than one-fifth of the company's total capacity.

The attacks, which have reached deep into Russia's interior, including cities like Yekaterinburg, are severely disrupting the company's logistics network. This disruption threatens thousands of small businesses and franchise pickup points that rely on the platform. Wildberries handles goods and services equivalent to 8.5% of Russia's economy, making these strikes a significant blow beyond the company itself.

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There will be a wave of bankruptcies. No one has enough money to support these sellers; we are talking about hundreds of billions of rubles. This is a major blow to the economy.

Ukraine claims Wildberries sells military and dual-use goods, including night vision equipment and tactical gear, and supports Russia's war effort, allegations the company denies. The attacks have resulted in at least 13 deaths, though Ukraine states its actions aim to increase the cost of war for Moscow and denies targeting civilians. Some attacks have utilized long-range drones, such as the FP-1 model from Ukrainian defense company Fire Point.

The impact is rippling through Russia's retail sector and small businesses. One Wildberries pickup point owner reported a 50% drop in sales, with many franchise locations now listed for sale. The company is offering discounts and deferred payments, and compensating affected sellers. Russian financial institutions are also concerned, with Sberbank noting a decline in credit quality among affected retailers and potential increases in loan loss provisions. A source close to the Kremlin warned of a wave of bankruptcies, estimating the economic blow to be in the hundreds of billions of rubles. The Russian Central Bank is monitoring the situation for potential inflationary effects.

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In the past month, my sales have dropped by about 50%, and the number of packages delivered daily has decreased from about 400 to around 150. I am almost losing money.