By Bosphorus News Economy Desk
Turkish fashion retailer Koton said stock used in its Russian e-commerce operations was damaged after Ukrainian drone strikes hit two warehouses operated by Wildberries, according to a filing with Türkiye's Public Disclosure Platform.
The July 20 filing said the affected inventory represented about 0.4 percent of the company's total assets as of March 31.
Koton said the two Wildberries warehouses were damaged in Ukrainian drone attacks on July 17. Initial assessments found that part of the company's inventory stored at the facilities had been affected.
The retailer did not disclose a nominal loss figure. It said the incident was not expected to materially affect its financial position, operations or business continuity, and that its activities were continuing as planned.
Insurance and Compensation Process Begins
Wildberries is continuing its assessment of the damage and preparing support measures for business partners affected by the attacks, according to Koton's filing.
Koton said it was monitoring damage assessment and compensation procedures under its existing insurance policies in coordination with local and regional insurance brokers.
The final financial impact will depend on the damage assessment and the outcome of the insurance and compensation process.
The company's 0.4 percent estimate indicates limited balance-sheet exposure. The incident nevertheless places a direct wartime cost on inventory held by a Turkish company inside Russia.
Online marketplaces allow foreign retailers to reach Russian consumers without operating every stage of storage and distribution themselves. Sellers remain dependent on warehouses, fulfilment centres and platform contracts outside their direct control.
Eight Workers Killed in Warehouse Attacks
The attacks struck Wildberries logistics hubs in Kotovsk, in Russia's Tambov region, and Elektrostal, east of Moscow.
Eight workers were killed, fires broke out and operations were disrupted, Reuters reported. Wildberries can process more than 20 million orders a day and serves more than one million sellers, meaning damage to its logistics network can affect businesses across the platform.
Kremlin spokesperson Dmitry Peskov said Wildberries and small and medium-sized businesses using the marketplace had suffered losses.
Ukraine said the facilities supported Russia's war effort by handling sanctioned components used in drone production and navigation systems. The Kremlin rejected the claim that Wildberries supplied the Russian military.
The military use of the warehouses remains disputed. The deaths, fires and commercial losses have been confirmed by Russian officials, Wildberries and companies with stock stored at the facilities.
Russia's Online Retail Sector Faces New War Risk
Russian online sales increased by 28 percent in 2025 to 11.5 trillion roubles, according to figures cited by Reuters. Digital sales of goods and services reached the equivalent of about 8.5 percent of Russian gross domestic product.
The scale of the market has made Wildberries and other platforms an important route for domestic and foreign brands seeking access to Russian consumers.
The warehouse attacks add physical destruction to the risks already facing companies operating in Russia. Retailers must manage sanctions restrictions, currency volatility, payment channels and weaker consumer demand. Inventory held in major logistics facilities now carries greater exposure to drone attacks, fire, operational shutdowns and disputes over compensation.
Koton's filing provides a confirmed corporate estimate of the damage suffered by a Turkish retailer after the Wildberries attacks.
Wildberries said restoration work was under way. Deliveries from the Kotovsk site were expected to resume by July 23, while the full cost of the damage to the company and sellers using its network remained unclear.
Koton said it would make a further disclosure if the assessment or compensation process produced a development requiring public notification.
Sources: Koton Public Disclosure Platform filing, Reuters, Wildberries statements, Bosphorus News review and reporting.