Ukraine's Wildberries Strikes Disrupt Russian Retail

Ukrainian drone attacks on warehouses operated by Wildberries, Russia's largest online retailer, are causing serious disruption for thousands of businesses and weighing on the country's retail sector.

According to Reuters, more than 1.18 million square meters of warehouse space were damaged or destroyed over a three-week period, equivalent to more than one-fifth of the company's logistics capacity.

The disruption has affected tens of thousands of merchants selling through the platform, as well as operators of pickup points.

One of them, Moscow businessman Vasily Klimov, told Reuters that deliveries had fallen from around 400 to about 150 a day, pushing his business into loss and prompting him to put it up for sale.

Ukraine says the attacks are intended to increase the economic cost to Russia of continuing the war. Moscow accuses Kyiv of targeting civilian infrastructure. Reuters reported that at least 13 people have been killed in the warehouse attacks.

Russia's central bank is monitoring whether supply disruptions will fuel inflation. Sberbank, the country's largest lender, said about 300 companies have sought to restructure loans following the attacks. The Kremlin says it is discussing possible support measures for Wildberries and its business partners, although no decisions have yet been made.

(Reuters, est)