Russia’s Wildberries Finding Fertile Ground in Central Asia

In the wake of a different conflict on the European front, Russian industry is once again turning its attention to Central Asia as a safer location for conducting business. Wildberries & Russ, the parent company of Russia’s largest e-commerce retailer, Wildberries, recently signed an investment agreement with the Uzbek Ministry of Investment, Industry, and Trade to expand its logistics capacity in Uzbekistan.

This move follows a similar announcement from Kazakhstan’s Ministry of Trade and Integration in early August, indicating Wildberries’ plans to expand its warehouse capacity in that country as well. Amid rising security concerns, Ukrainian drones have struck at least 20 of Wildberries’ warehouses in Russia, causing significant losses and damage.

Wildberries has been expanding its warehousing capacity in Kazakhstan and Uzbekistan since 2023, with the first logistics center opening in Uzbekistan in October of that year. The newly announced deal pertains to a planned logistics hub in the Tashkent region of Uzbekistan, which is expected to create at least 7,500 jobs. The expansion into Central Asia is driven by both the commercial potential of the region and the ongoing conflict in Ukraine, which has targeted Wildberries’ facilities in Russia.

While Ukrainian authorities have justified their strikes on the grounds that the warehouses are involved in supplying the Russian military with drone components and other equipment, concerns about collateral damage to Kazakhstan’s oil exports have led to some pushback from both Astana and Washington. Despite these risks, the commercial logic for expanding into Central Asia remains strong.