Wave of Bankruptcies Expected Among Wildberries Sellers in Russia

Russian authorities do not have sufficient funds to support sellers on the Wildberries marketplace who have been affected by drone attacks on logistics complexes. The situation with Wildberries, which controls about half of the e-commerce market, is a serious blow to the economy. A wave of bankruptcies among sellers is forecasted, as hundreds of billions of rubles are needed for their support, which are not available in the budget. At least 20 Wildberries logistics hubs have been damaged, some of which have burned down. The company has lost 1.18 million square meters of warehouse space, which accounts for about 20% of the total. Tens of thousands of entrepreneurs have been left without goods and opportunities to sell them. Most traders are individual entrepreneurs who, under the law, are liable for debts with their property. The direct damage to Wildberries from the loss of warehouses is estimated at 100-200 billion rubles, and more than 1 trillion rubles may be needed to recover from the crisis. Russian authorities are only considering indirect support measures, such as loan holidays and tax breaks. The federal budget for the first half of the year has a deficit of 5.7 trillion rubles, and by the end of the year, the deficit could grow to 7-8.2 trillion rubles.

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