Ukrainian Drone Attacks Force Wildberries to Suspend Warehouse Operations
Impact of Drone Attacks on Wildberries and the Russian Consumer Economy
Overview of the Attacks
MOSCOW, July 23 (Reuters) - Leading Russian online retailer Wildberries halted operations at one of its warehouses following a Ukrainian drone attack overnight on Thursday, as Kyiv broadens its campaign against a company at the heart of Russia's consumer economy.
Kyiv has struck four warehouses owned by the company beginning on the weekend on the grounds that they are part of infrastructure that supports the Russian military.
The Kremlin has denied that Wildberries handles military supplies. Russia has targeted Ukraine's logistics hubs as well as its energy system and power grid.
Extent of the Damage
Logistics Capacity Losses
Open source data analysis by Russia's Kommersant daily showed that the recent attacks have damaged approximately 10% of Wildberries' logistics capacity, equivalent to 552,000 square metres (5.9 million square feet) of warehouse space.
Financial Impact
The company has not commented on the scale of the damage, but the Kremlin has said Wildberries, as well as the small and medium-sized businesses who sell goods on its platform, have all suffered financial losses.
Significance of the Consumer Economy
Role of Wildberries and Ozon
CONSUMER ECONOMY KEY TO RUSSIA'S GROWTH
Together with smaller rivals, Wildberries and top competitor Ozon sell goods and services worth the equivalent of 8.5% of Russia's gross domestic product and employ 4 million people, or more than 5% of the country's workforce.
Kremlin's Economic Strategy
For the Kremlin, the continued expansion of the consumer economy is key to its plans to jumpstart broader growth across Russia's stagnating, war-focused economy.
Details of the Voronezh Warehouse Attack
Incident Description
On Thursday, the governor of Russia's Voronezh region said the roof of a warehouse belonging to an online marketplace had been damaged in an overnight attack that also killed a three-year-old boy.
Alexander Gusev, the governor, did not name the owner of the warehouse.
Wildberries' Response
But on Thursday morning, the Wildberries team in Voronezh wrote on Telegram that it was extending the suspension of operations at the warehouse from 12 a.m. to 7 a.m.
Several hours later, it posted again, saying the Voronezh warehouse would remain closed. "We see all your inquiries and concerns," the company wrote. "Please be patient."
Contacted by Reuters on Thursday, the company said: "Warehouse operations will resume shortly."
Reporting Credits
(Reporting by Reuters; Writing by Lucy Papachristou; Editing by Toby Chopra)
