Ukraine Says Seven of Wildberries' Ten Largest Logistics Centers Halted

Ukraine's Defense Ministry said on the 16th that Ukrainian forces have halted operations at seven of the ten largest logistics centers of Wildberries, Russia's biggest e-commerce platform. After a large-scale drone attack on the Moscow region early on the 16th, the company's logistics hub at the Kredinoo Industrial Park also stopped operating, in addition to its warehouse in Domodedovo. The ministry said the Kredinoo hub is Wildberries' largest warehouse by area, covering 250,000 square meters and employing about 13,000 staff.

Russia's Defense Ministry said its air defense systems intercepted 822 Ukrainian drones overnight, of which about 600 were headed toward Moscow. Since mid-July, Ukraine has attacked 20 Wildberries warehouses in Russia. As of August 7, excluding the Podolsk warehouse, Wildberries had 20 facilities and more than 1.18 million square meters of warehouse space disabled as a result of drone attacks, equivalent to more than one-fifth of its total storage capacity.

Wildberries is Russia's largest online retailer, with about 98,000 pickup points supporting the operations of tens of thousands of merchants. Together with another Russian e-commerce platform, Ozon, the value of goods and services the two companies sell accounts for 8.5% of Russia's gross domestic product. The two platforms provide employment for about 4 million people, representing more than 5% of Russia's workforce. Inventory losses and distribution disruptions caused by the warehouse attacks have raised concerns over the risk of merchant bankruptcies, inflationary pressures, and the potential for state support measures.