More Wildberries Logistics Hubs Burning (and a Rare Miss)

Moscow Region Governor Andrei Vorobyev's official telegram channel via AP

Ukraine seemed to take a day or two off their focus on Wildberries (aka Russia's Amazon) attacks earlier this week. But they were back at it in the last couple days.

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In Volgograd a Wildberries was hit. Volgograd was formerly Stalingrad, the location of the WWII Battle of Stalingrad. It's home to about a million people.

Not much of this one survived.

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The previous day Ukraine took out another hub in the city of Penza.

This one also looks like a major loss.

With these strikes, about 40 percent of Wildberries hubs have taken a hit in less than two weeks.

Wildberries has competitors in the online retail space and one of those, Ozon, was also under attack this morning. However, the drone missed.

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It's not clear what happened here. I see some people suggesting this was the result of Russian countermeasures. Maybe but if so why aren't the Wildberries hubs being protected?

Despite this one miss, even Russian military bloggers can see what is happening. Ukraine controls the skies.

The attacks on Wildberries are probably going to result in a government bailout. And that in turn could put a serious strain on Russian banks.

The Kremlin has acknowledged it may have to prop up online retailer Wildberries – which has lost 10% of its warehousing capacity and huge amounts of stock in Ukrainian drone attacks. Kyiv has said its forces are attacking “Russia’s Amazon” because of its role in supplying Moscow’s army. The Kremlin acknowledged the government had discussed possible support for Wildberries. A senior industry source told Reuters that Wildberries was in a difficult situation and might have to seek government support, most likely through state-controlled banks, in order to maintain operations.

An ‌executive at Ukraine’s leading arms producer Fire Point has said Wildberries is being targeted by Ukraine partly because of its partnership with state-controlled bank VTB. Denys Shtilerman, Fire Point’s co-founder and chief designer, in an interview posted on 27 July with the Ukrainian journalist Dmitry Gordon, described Wildberries as the largest borrower in Russia and said its demise would lead to the collapse of a large number of banks, including VTB. Wildberries and its rival Ozon are central to the Russian government’s plans to spur economic growth as Moscow faces mounting budget pressures from increased military spending and a broader economic slowdown.

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Stay tuned for more of this. Ukrainian drones continue to multiply and there are still plenty of targets in Russia.

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