Russia estimates Wildberries and seller losses from Ukrainian strikes at US$7-8.5bn

Total losses for Wildberries and its sellers from Ukrainian drone attacks have been estimated at RUB 600-800 billion (approx. US$6-8.5 billion).

Source: Meduza, a Latvia-based Russian media outlet

Details: Margarita Yevstigneyeva, head of Russia's Association of Suppliers of Goods for E-Commerce Platforms, has stated that more than 400,000 sellers were affected by the attacks on Wildberries warehouses, with total damages amounting to RUB 600-700 billion (approx. US$6-7 billion), including lost revenue.

This accounts for the cost price of goods ranging from RUB 200 to 300 billion (approx. US$2-3.5 billion). According to her estimates, many sellers lost up to 95% of all their stock.

Restoring the warehouses and infrastructure after the Ukrainian drone attacks could cost the Wildberries marketplace between RUB 147 and 223 billion (approx. US$1.7-2.6 billion).

If full demolition, waste removal and land reclamation are required, costs could rise to RUB 169-278.9 billion (approx. US$2-3.3 billion), noted Sergei Semko, lead analyst at the Data Insight research agency.

He estimated potential seller losses on Wildberries at RUB 445-507.8 billion (approx. US$5.2-6 billion).

"Thus, the total possible damage to Wildberries and its sellers can currently be estimated at between RUB 600 and 800 billion (approx. US$6-8.5 billion)," the report states.

Background:

• Russian marketplace Megamarket previously changed its terms for sellers: the Sberbank platform removed its liability for loss of goods during drone attacks. Wildberries, Ozon and Yandex Market also amended their terms.
• Magnit Market – the marketplace of the Magnit retail chain – has also released itself from liability for failure to fulfil obligations during drone strikes and missile attacks.

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