Ukrainian strikes, Wildberries and the risk of economic contagion in Russia

For most people outside Russia, Wildberries is an unfamiliar name - or at least it was until a few weeks ago.

It is the Amazon of Russia - the country's largest online retailer and one of the pillars of its consumer economy.

Founded in 2004 by Tatyana Kim, it is used by millions of Russians every day to buy everything from clothing and electronics to medicines, children’s toys and household goods.

Wildberries processes more than 20 million orders a day through its network of warehouses, distribution centres and collection points. It is a behemoth which, together with its principal rival, Ozon, accounts for around 8.5% of GDP and supports around four million jobs.

In a country where sanctions, inflation and the demands of war have reshaped the economy, Wildberries has become one of the few genuine success stories.

That helps explain why Ukraine’s recent campaign against the company has attracted so much attention - and why Kyiv have been targetting Wildberries warehouses.

This post explains that the effects are much more serious than the destruction of inventory - that the real story is what happens when one of Russia's most important commercial platforms comes under sustained attack.