Can ‘Russia’s Amazon’ Survive Ukraine’s Drone Campaign?
Russia’s online retail sector has thrived since the invasion of Ukraine. The attacks on Wildberries now threaten to disrupt that growth.
Wildberries, Russia's dominant online marketplace, has faced significant disruption from Ukrainian drone strikes. As of Monday, over 27% of the company's warehouse space has been rendered inoperable, equivalent to 14 warehouses covering more than 1.5 million square meters. Analysts project the cost to rebuild these facilities could reach $1.29 billion, though this is still considered manageable for the retailer.
However, the attacks are expected to generate indirect costs as well, including higher logistics expenses and potential losses for merchants using the platform. The Russian government has indicated it may provide compensation to affected sellers, though the impact on the broader economy is expected to remain limited. Despite the challenges, Russia's online retail sector has shown resilience since Western brands withdrew following the invasion of Ukraine, with Wildberries' market share projected to grow to 45% of the market by 2026.
Written by urgent.news from The Moscow Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
