The Russian government is examining ways to support Wildberries, the country’s largest online retailer, as well as related businesses, following drone attacks in Ukraine, and the state-controlled VTB bank is set to play a central role, two sources told Reuters news agency on Tuesday.
The Kremlin acknowledged that discussions have taken place within the government regarding potential support, but clarified that no decision has yet been made.
Wildberries and its rival, Ozon, occupy a central place in the government’s plans to stimulate economic growth, in a context where Moscow is facing increasing budgetary pressures generated by rising military expenditures and a generalized economic slowdown.
Drones have damaged at least seven warehouses of Wildberries, the retailer dubbed “Russia’s Amazon”, destroying approximately 10% of the company’s storage capacity, disrupting operations, and causing losses for tens of thousands of small businesses selling goods and services on the platform.
Wildberries has conveyed that it will need at least 30 days to assess the damages before it can start making payments to the sellers whose goods were stored in the affected warehouses. The company also announced reductions in storage fees to support businesses.
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