MOSCOW, Russia: Ukrainian drone strikes targeting Wildberries warehouses across Russia in near-daily attacks have severely disrupted the retail distribution channels across the country.

Within just a few weeks, a once-stable small business in Moscow has been pushed into crisis, reflecting wider disruption across Russia's retail sector.

The situation deteriorated rapidly after July 18, with Ukrainian drones striking at least 20 facilities, triggering fires, destroying inventory, and severely disrupting distribution channels across the country.

Vasily Klimov, who operates an online order pick-up point, has seen his outlet shift from profitability to mounting losses, prompting him to try to sell the business.

Klimov is part of a vast network of nearly 98,000 collection points serving customers of Wildberries, Russia's largest e-commerce platform. These locations allow buyers to pick up goods ordered online, forming a critical part of the company's logistics system across Russia and neighboring countries.

Satellite analysis indicates that more than 1.18 million square meters of warehouse space, that is over one-fifth of the company's storage capacity, has been damaged or destroyed. In response, Wildberries has reported ongoing attacks while seeking new partners to establish replacement storage hubs.

The fallout has extended far beyond warehouse operations. Franchise owners like Klimov and countless small businesses that depend on the platform for online sales have been significantly affected. With deliveries interrupted, many sellers are struggling to maintain operations.

Klimov described the sharp decline in activity at his outlet, noting that customer orders and deliveries have dropped dramatically in recent weeks. "Sales have dropped by about 50 percent over the past month, and that is because there are almost no deliveries," he said, adding that the business has been operating at a loss throughout that period.

The violence linked to the warehouse strikes has also resulted in casualties, with at least 13 people reported killed. Ukraine has stated that its actions are part of a broader effort to increase pressure on Russia domestically, while denying that civilians are being deliberately targeted.

Meanwhile, Russia has carried out its own strikes, including attacks on warehouse facilities in and around Kyiv that it claims were being used for storing components with both civilian and military applications.

Ukraine has accused Wildberries of indirectly supporting Russia's war effort by facilitating the sale of goods that could have military uses, though both the company and Russian authorities have rejected those claims.

Role of Wildberries in Russia's Economy

The importance of Wildberries to Russia's economy underscores the scale of the disruption. Alongside other e-commerce platforms, it accounts for goods and services equivalent to roughly 8.5 percent of the country's economic activity.

Russian Central Bank Governor Elvira Nabiullina has indicated that authorities are monitoring whether the supply disruptions will contribute to rising inflation. Economists warn that prolonged instability could complicate efforts to reduce interest rates, which currently remain elevated.

For operators like Klimov, the impact is immediate and severe. Daily deliveries to his location have dropped from around 400 parcels to roughly 150, and on some days, no shipments arrive at all. With limited financial reserves, he has been left with little choice but to attempt to sell the business, even as potential buyers remain scarce.

Across Russia, thousands of similar franchise outlets are now up for sale, with more than 3,100 listings appearing on online marketplaces in recent days.

Some business owners are looking to Wildberries for relief. The company has introduced measures, including increased discounts, deferred payments, and initial compensation, for tens of thousands of sellers who lost inventory in the attacks. However, for many small operators, the uncertainty continues to threaten their survival.