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.
