HomeCompany NewsWildberries, 'Russia's Amazon', becomes a target for Ukraine

Wildberries, ‘Russia’s Amazon’, becomes a target for Ukraine

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By Gleb Bryanski

MOSCOW, July 22 (Reuters) - From humble origins ‌as a family business run out of an apartment near Moscow, Wildberries has grown in under two decades into ​Russia's top online retailer and a key economic driver in the country. It's now become a target of strikes by Ukraine.

Ukraine has attacked four Wildberries warehouses over the last week in a widening ⁠campaign of drone strikes against a company at the heart of Russia's consumer economy, bringing the war closer to millions of ordinary Russians.

In towns across Russia, pick-up points for the company and its leading rival, Ozon, have become ubiquitous. It claims to process 20 million orders a day at vast warehouses spread across the country, ​with a combined area of 3 million square metres.

Its co-founder Tatyana Kim has become Russia's richest woman, according to Forbes, with a net worth of $7 billion.

The attacks threaten serious losses for businesses ‌that sell through Wildberries, Russia's version of Amazon.com, and potential disruption to customers who use it to buy clothing, appliances, medicines, cosmetics and a host of other products.

Russia, for its part, has attacked Ukrainian infrastructure, logistics and enterprises throughout the 4-1/2-year war. Ukraine says its deep strikes inside Russia are aimed at undermining Moscow's military effort ⁠and forcing an end to the conflict.

Russia says recent attacks on refineries and warehouses are aimed at stirring turmoil in society.

ONLINE RETAIL GIANTS ⁠EMPLOY 4 MILLION PEOPLE

Together with smaller rivals, Wildberries and Ozon sell goods and services worth the equivalent of 8.5% of Russia's gross domestic product. They provide jobs for 4 million people, or more than 5% of the country's workforce.

The companies form the backbone of what the Kremlin calls the "platform economy", which connects millions of consumers with sellers, couriers, warehouse workers and pick-up point operators through online marketplaces.

The firms are central to the Kremlin's plans to reinvigorate growth in a stagnating, war-focused economy. President ‌Vladimir Putin's top man on the economy, Maxim Oreshkin, has been personally tasked with overseeing the sector.

Oreshkin has described platforms such as Wildberries and Ozon as a ⁠new form of planned economy, run not by human-led institutions as in Soviet times but by algorithms.

RUSSIAN BUSINESS ICON

Wildberries ‌boss Kim was born in the Chechen capital, Grozny, in 1975 to a family of ethnic Koreans. ​She worked as an English teacher before founding the company with her husband Vladislav Bakalchuk in 2004 - a story with echoes of China's Alibaba founder Jack Ma. 

The couple initially worked out of their apartment in the Moscow region but later rode the e-commerce boom of the 2010s to build Russia's largest online retailer.

Kim, a ‌mother of seven, presents herself as a self-made businesswoman who built her empire by following her exceptional intuition. ​She has become an icon for many aspiring businesswomen in Russia.

The couple ⁠went through a dramatic divorce two years ago after Kim agreed to an unexpected merger with a much smaller outdoor advertising ‌firm, saying the deal was aimed at creating a global electronic trading platform.

The deal received ⁠the Kremlin's blessing, but Kim's ex-husband Bakalchuk disputed the merger, calling it an asset grab. Two guards were killed during an attack on a Wildberries office in central Moscow in 2024.

This year, the company further strengthened its position in the sector through an alliance with Russia's second-largest bank, VTB, which acquired a 5% stake in ​WB Bank, Wildberries' financial arm, with an option to ‌increase its holding.

Wildberries is now building a new 400-metre-high (1,300 ft) headquarters in Moscow's City business district, next to the offices of some of Russia's largest companies, including Transneft, ⁠Norilsk Nickel and VTB. 

It will be Moscow's tallest building when completed in 2030.

President ​Volodymyr Zelenskiy described Ukraine's latest targets as logistics hubs involved in supplying Russian forces with drone components and other equipment. Kim said Ukraine had attacked ​ordinary people doing their jobs.

(Reporting by Gleb Bryanski; Editing by Mark Trevelyan)

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