"What to do?" asks a Russian entrepreneur helplessly: "Wait and pray?"
Translated from German, summarized and contextualized by DistantNews.
At a glance
- Ukraine has shifted its strategy, targeting Russian retail and logistics centers with drone attacks, including major Wildberries warehouses.
- The attacks on Wildberries, Russia's largest online marketplace, are hitting a central nerve of the Russian economy, according to an economist.
- Wildberries, founded by Tatjana Bakaltschuk, has grown significantly, contributing to a more convenient retail network across Russia.
Ukraine has intensified its attacks on Russian economic infrastructure, shifting focus from oil refineries to the retail sector. Since July 18, major logistics warehouses belonging to Wildberries, Russia's largest online marketplace, have been subjected to significant drone attacks.
These strikes have crippled operations, with at least four large warehouses, totaling 444,000 square meters, now out of commission due to fires. This represents approximately 8% of Wildberries' total warehouse space. The attacks are seen as a strategic move by Ukraine to disrupt a vital component of the Russian economy.
Vasily Astrov, a Russia economist at the Vienna Institute for International Economic Studies (WIIW), described the targeting of Wildberries as hitting "a central nerve of the Russian economy." The online retail sector has seen rapid growth in Russia, with a recent survey indicating that 45% of the population regularly shops online. Wildberries holds about 10% of the national retail market share.
Founded in 2004 by Tatjana Bakaltschuk, who had dreams of peace and economic growth for Russia, Wildberries has become a dominant force in e-commerce. The company reported revenues of 6.1 trillion rubles (approximately 67 billion euros) last year, with a profit of 175 billion rubles, marking significant year-on-year increases. However, its scale and efficiency, which provide competitive pricing and fast delivery, also make its vast logistics centers vulnerable targets.
Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.