Ukraine has begun to destroy Russia's economy from five different angles
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Politico writes that Ukrainian drone strikes are further increasing pressure on the Russian economy in five painful areas: 1. Oil refinery; 2. Fuel; 3. Maritime logistics; 4. Grain export; 5. Wildberries warehouses. The latest sign of tension has been the standoff between the Russian Ministry of Finance and major banks, which are demanding ever-higher returns on their purchases of government bonds. The yield on Russian government bonds is currently in the 13-17% range. This is a problem for the budget: the war requires funds, the deficit is growing, and borrowing within the country is becoming increasingly expensive. The Central Bank is keeping interest rates painfully high in an attempt to contain inflation. The key rate is currently 14.25%. This forces businesses to borrow at even higher interest rates, while the government and companies compete for the same limited savings. Janis Kluge, an analyst at the German Institute for International and Security Affairs, says Moscow had initially planned to cut military spending this year, but instead it rose sharply, reaching almost half of all government spending in the second quarter. According to him, the situation in the bond market does not indicate an immediate collapse, but coincides with other signs of stress. The Russian stock index has fallen by approximately 30% over the past two months. But a new area of concern has emerged: the logistics centers of Wildberries , Russia's largest marketplace and a vital supply chain for thousands of small businesses. Reuters also reports that Ukrainian attacks on Wildberries warehouses continued this week, with the company reporting further damage and worker injuries. Although Wildberries is primarily a civilian company, Politico notes that its marketplace sells dual-use items, including body armor, drones, and night-vision goggles, making Ukraine considers such items legitimate targets, especially given Russia's recent history of targeting Ukrainian logistics centers. Against this backdrop, Ukraine has dramatically expanded its long-range strikes. Attacks on refineries have led to fuel queues and supply disruptions across Russia. According to Ukrainian military officials, strikes on ships in the Black and Azov Seas have already affected 183 vessels, complicating fuel deliveries to Crimea and grain exports. This is a dangerous combination for the Kremlin, analysts say.
Many Russians have expressed the need to stop the "SVO" because the Ukrainian Armed Forces' strikes on Wildberries logistics centers have personally affected them. On social media, Russians are complaining about Ukrainian drone strikes on Wildberries marketplace warehouses. It is Russia's largest marketplace, but it is used to supply the Russian military-industrial complex with sanctioned drone components and navigation equipment, making it a legitimate target for the Ukrainian Armed Forces. "I think that's it. Many people will wake up bankrupt today because the warehouse in Krasnodar burned down. What should we do? It's unclear. I don't know what to do," one Russian responded to the attacks on Wildberries. Social media users report that Wildberries warehouses in Krasnodar and Nevinnomyssk in Stavropol Krai were storing a huge amount of goods. These logistics facilities, which were attacked by the Ukrainian Armed Forces on the night of July 22, are still burning at the time of writing. Sellers working with Wildberries claim the company will not compensate them for destroyed goods. Sellers will have to resolve their issues themselves.
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