Die Welt: The Kremlin Fears This

A wave of bankruptcies is coming to Russia.

Ukrainian strikes on facilities belonging to Russia’s largest marketplace, Wildberries, have caused a major disruption in its logistics network, which is already affecting sellers and order pickup points. According to the German publication Die Welt, approximately 20 of the company’s facilities have come under attack since July 18.

An analysis of satellite imagery shows that approximately one-fifth of Wildberries’ warehouse capacity has been damaged or destroyed. The scale of the damage has been so significant that the situation has begun to be discussed at the highest levels of the Russian government—according to available information, officials are considering options to support both the company itself and the affected sellers.

Pickup points lose half their revenue

Supply disruptions are already directly affecting thousands of entrepreneurs whose businesses rely on Wildberries’ infrastructure. Vasily Klimov, the owner of one of the Moscow pickup points, told the publication that monthly sales have dropped by about half due to the near-total lack of deliveries.

According to him, while the pickup point used to receive about 400 packages daily, that number has now dropped to about 150, and during the journalists’ visit on a Tuesday, there were no deliveries at all. Due to the sharp drop in turnover, the entrepreneur said he is considering selling his business, citing a lack of financial reserves to continue operations.

The problem affects more than just individual pickup points: according to Wildberries itself, customers receive about 95% of their orders through these pickup points, so damage to warehouses impacts the company’s entire network and sellers as a whole.

Risk of a Wave of Bankruptcies

The consequences for Russian business could extend beyond the problems of a single marketplace. According to available data, the Central Bank of Russia is monitoring how disruptions at Wildberries might affect inflation.

In late July, Sberbank announced a possible increase in loan loss reserves—due to the fact that drone strikes have damaged e-commerce and affected sellers. Reportedly, about 300 companies are already seeking to restructure their loans.

According to sources, the Kremlin fears the situation will worsen further: businesses lack the resources to support affected sellers, and the necessary amount of aid is estimated at hundreds of billions of rubles. One source described the expected consequences as a serious blow to the economy, noting that a wave of bankruptcies may lie ahead.

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