Russia Weighs State Support for Wildberries After Ukraine Strikes

The Russian government is considering providing financial support to Wildberries, the country’s largest online retailer, after Ukrainian drone strikes damaged several of its warehouses, according to sources familiar with the discussions.According to Reuters, officials are exploring possible assistance through state-controlled lender VTB, although the Kremlin said no final decision has been made.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.Drone strikes disrupt operationsUkrainian drone attacks damaged at least seven Wildberries warehouses, destroying about 10% of the company’s storage capacity.The damage disrupted operations and affected tens of thousands of small businesses that use the platform to sell goods and services.Wildberries said it would need at least 30 days to assess the losses before compensating sellers whose products were stored in the damaged facilities. The company also introduced discounts on warehouse storage fees to help affected businesses.A source close to the company told Reuters that Wildberries founder and CEO Tatyana Kim has been discussing possible support measures with Russian authorities, including tax relief that could reduce pressure on the company to compensate sellers.Government weighs financial assistanceAccording to Reuters, the government is considering several forms of support, including loans from state-owned banks to Wildberries or its sellers, tax breaks and subsidies.Kremlin spokesperson Dmitry Peskov praised the company for offering assistance to affected sellers despite having no legal obligation to do so. Other Topics of Interest Wildberries Eyes Kazakhstan Warehouses After Ukrainian Drone Strikes Hit Russian Logistics Network Wildberries said its logistics expansion is part of its long-term development strategy rather than an emergency relocation effort. “This, of course, deserves the highest praise,” Peskov said.VTB First Deputy CEO Dmitry Pyanov said the bank would consider providing financial support if requested.“If we receive such a request, we will, of course, be open to various forms of lending support,” he said.Ukraine says retailer supports Russia’s war effortUkraine has previously said Wildberries was targeted because of its role in supporting Russia’s military logistics.An executive at Ukrainian arms manufacturer Fire Point also cited the retailer’s partnership with state-controlled VTB as one of the reasons it became a target.In an interview broadcast on July 27, Fire Point co-founder Denys Shtilerman described Wildberries as one of Russia’s largest borrowers, arguing that its collapse could trigger broader financial problems for Russian banks, including VTB.Wildberries reported debt of 830 billion rubles (about $10.6 billion) under Russian accounting standards, although the company said its leverage remains manageable under international accounting standards.Wildberries and rival Ozon have become central to the Kremlin’s strategy for supporting domestic economic growth as Russia faces mounting pressure from wartime spending and a slowing economy.The retailer hosts around one million registered sellers, many of whom rely on the platform as their primary source of income. Several affected merchants have appealed to Russian authorities for tax relief, arguing that it would be more effective than direct compensation for losses caused by the warehouse attacks. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.