Russia may need over 1.3T rubles to rescue Wildberries after drone strikes
Ukrainian strikes on Wildberries, resulted in the burning of at least 14 of the company's logistics hubs, has destroyed the business model of Russia's largest marketplace, which annually generated sales equivalent to 3% of national GDP, The Bell wrote on Aug. 6.
Ukrainian drone strikes on Wildberries' logistics hubs have caused significant damage, potentially totaling over 1.3 trillion rubles ($16.4 billion) to rescue the company. The strikes resulted in the destruction of at least 14 logistics hubs, wiping out 20% of the company's warehouse capacity. The decline in turnover has left Wildberries with a cash flow crisis, unable to pay sellers and meet customer discounts.
Government intervention is expected, including tax holidays, subsidized loans, and the use of Russian Post warehouses as temporary storage facilities. The government's budget deficit is already at 5.7 trillion rubles ($72 billion), and experts predict it may reach 7 trillion rubles ($88.4 billion) by year-end, with the Central Bank estimating it could exceed 8 trillion rubles ($101 billion).
Wildberries is exploring leasing vacant warehouses in Kazakhstan to mitigate losses, and the Russian government is considering various support measures for the marketplace and its affiliated businesses.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
