Ukrainian drone strikes have targeted multiple warehouses of Wildberries, Russia’s largest online retailer, causing significant damage, loss of life, and widespread disruption to small businesses reliant on the platform. The attacks, which began last weekend and have continued over several days, hit at least nine Wildberries logistics centers spanning from areas near Moscow to the Leningrad region near St Petersburg and southern Russia. At least nine people have been reported dead, with many more injured, and billions of dollars worth of inventory destroyed.

Wildberries, often described as Russia’s equivalent to Amazon, reported a turnover of approximately 6.1 trillion rubles ($78 billion) last year and serves a large customer base of lower-income Russians, particularly outside major cities like Moscow and St Petersburg. Its expansive network of over 200 warehouses and collection points has made it an integral part of daily life for many Russians but has also exposed it to vulnerability amid the ongoing conflict.

Ukraine has defended the strikes as retaliation for Russian attacks on its own logistics infrastructure, specifically citing Russian assaults on the warehouses of Nova Poshta, a Ukrainian private postal service. Ukrainian President Volodymyr Zelenskyy stated that Wildberries’ logistics operations were used to supply the Russian military with drone components, navigation equipment, and other gear. While Kremlin spokesperson Dmitry Peskov denied these claims, reports indicate that some sellers on Wildberries’ platform offer goods potentially applicable to drone manufacturing or military use, such as body armor and helmets, many imported from China and falling under dual-use regulations. These goods have reportedly been popular among grassroots Russian supporters who fund and equip troops and build rudimentary drones.

Despite this, the majority of products sold through Wildberries are civilian in nature. The strikes have destroyed roughly 8 to 10 percent of Wildberries’ storage capacity, damaging approximately 444,000 to 552,000 square meters of warehouse space. The estimated cost of rebuilding is around 36 billion rubles ($460 million), while the value of lost inventory—primarily belonging to independent merchants using Wildberries as a sales platform—is reported to be between 150 and 235 billion rubles for some facilities alone. Overall losses could amount to $3 billion to $4.4 billion, according to data from Moscow-based analysts.

The impact on small businesses has been severe. Vendors have publicly expressed shock and despair over losses sustained in the attacks, with some losing entire inventories overnight, threatening their livelihoods and ability to repay loans. Among those affected are entrepreneurs like Tatiana Mikhaleva, who lost 4,000 fur coats worth over 20 million rubles, and Viktoria Terekhova, a clothing vendor who said her business risks default. Merchants have expressed frustration with Wildberries, particularly after the company revised its terms less than two weeks before the strikes to classify drone attacks as force majeure, thereby limiting its liability for compensating lost goods.

Wildberries’ co-founder and CEO Tatiana Kim has acknowledged the difficulty in securing insurance coverage for drone attacks and announced a compensation program aimed at supporting the platform’s smallest and most vulnerable sellers. However, reports from affected merchants indicate that payments have covered only a fraction of their actual losses, fueling discontent.

The strikes form part of a broader Ukrainian campaign employing long-range drones to target key Russian infrastructure, including refineries and supply chains, with the goal of undermining Russia’s war economy and eroding the sense of normalcy within the country. This strategy has already contributed to fuel shortages and rationing across Russia, further impacting the population.

Russian officials have condemned the attacks on Wildberries, and the Kremlin remains in contact with the company. Russian economists note that while the economic damage may not cause immediate large-scale disruption, the psychological effect on a population previously shielded from the direct consequences of the conflict is significant. Analysts argue that the strikes highlight a shift as the war increasingly touches everyday life across Russia, challenging the government’s narrative that the fighting remains distant from the urban middle class.

President Vladimir Putin has thus far not publicly commented on the attacks on Wildberries, and continues to assert his determination to pursue military objectives despite mounting economic and social challenges at home.