RUSSIA WEIGHS STATE SUPPORT FOR WILDBERRIES AFTER UKRAINIAN ATTACKS

The Russian government is exploring financial support for Wildberries, the country's largest online retailer, following repeated Ukrainian drone strikes on its warehouses. According to reports, potential assistance could include loans from state-owned banks, tax breaks or subsidies. Ukraine has acknowledged attacking the company, stating that Wildberries supplies logistics to Russian frontline troops. The drone attacks damaged at least seven warehouses, destroying approximately 10 per cent of the company's total storage capacity and causing losses to tens of thousands of small businesses operating on the platform.

Kremlin spokesperson Dmitry Peskov acknowledged that the government had discussed possible support for Wildberries. A senior industry source told Reuters the company faced a difficult situation and would likely need to seek government assistance through state-controlled banks to maintain operations. An executive at Ukraine's leading arms producer Fire Point stated that Wildberries was being targeted partly because of its partnership with state-controlled bank VTB. The company has already paid out 40 million roubles (approximately US$508,582) to families of those killed or injured in the drone attacks. Sellers on the platform have publicly appealed for government assistance, with one seller telling her 1.3 million Instagram followers she was appealing to "the country's leadership".

Wildberries and its rival Ozon are central to the Russian government's economic growth plans as Moscow faces mounting budget pressures from military spending and broader economic slowdown. The potential collapse of Wildberries could have significant consequences for Russia's banking sector, according to industry analysis. The situation illustrates the expanding scope of the Ukraine-Russia conflict beyond military operations into civilian infrastructure and the broader economy.