Russia Plans Retail Aid After Ukrainian Drone Strikes Hit Warehouses

The Federal Government of Russia is developing a financial support package for retailers following a series of Ukrainian drone strikes targeting logistics hubs. In mid-July, attacks on more than a dozen Wildberries warehouses from southern Russia to the Urals killed several people and eliminated at least 17% of the company's warehouse capacity. Affected sellers have reported losses approaching 280 billion rubles ($3.5 billion). Deputy Prime Minister Alexander Novak has ordered ministries to propose measures by August 10, including tax holidays and subsidized loans.

Ukrainian operations expanded overnight Tuesday, striking warehouses in the Moscow, St Petersburg, and Tver regions. An attack on an industrial site in Novoselki, Chekhov, killed at least five people and injured 10 others. Ukraine alleges these depots supply the Russian military, a claim Moscow denies. In response, Russia launched strikes across Ukraine, killing at least four people in Sumy and Mykolaiv and setting fire to a food warehouse in Dnipro.

Wildberries founder Tatyana Kim announced the company is reorganizing its logistics network and implementing three-month payment holidays through its financial arms, though the company has suspended its investment program. Other major retailers, including Ozon and X5 Retail Group, are currently reassessing their logistics networks to mitigate similar operational risks.