Russian authorities are considering measures to support Wildberries, the country’s largest online retailer, following Ukrainian drone strikes on its warehouses.
State-controlled bank VTB is expected to play a key role in any assistance package, Reuters reported, citing sources.
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At least seven Wildberries warehouses were hit in the attacks, wiping out roughly 10% of the company’s total storage capacity and disrupting its operations.
The damage has also hit thousands of small businesses that sell goods through the platform.
Wildberries has said it needs at least 30 days to evaluate the extent of the damage before it can start compensating affected sellers.
In the meantime, the company has introduced discounted storage fees.
According to sources, the support being considered could take the form of loans from state-owned banks extended to Wildberries or its sellers, as well as tax relief or subsidies.
A source close to the company said founder and chief executive Tatyana Kim has been liaising with government officials on potential measures, including tax concessions that would reduce the financial burden on the company of paying out compensation.
The Kremlin acknowledged that talks had taken place at government level but stressed that no final decision had been reached.
Kremlin spokesman Dmitry Peskov commended Wildberries for stepping in to help affected sellers, noting the company was under no legal requirement to do so.
Wildberries itself declined to comment to Reuters on any discussions with the government.
The news comes after VTB agreed a partnership with Wildberries in June, taking a 5% stake in WB Bank, the retailer’s financial services arm, with the option to expand that stake further.
According to the report, Ukraine had said its initial motivation for targeting Wildberries was the company’s role in supplying the Russian military.
An executive at a leading Ukrainian arms manufacturer added that the company’s ties to VTB were also a factor behind the strikes.
Wildberries and competitor Ozon feature prominently in the Russian Government’s strategy to drive economic growth, as the country grapples with budgetary strain stemming from increased military expenditure and a wider economic slowdown.
Moscow has taken a selective approach to backing struggling sectors in recent times, extending support to coal producers while withholding it from certain construction entities.
Under Russian accounting standards, Wildberries has reported debt of Rbs830bn ($10.58bn).
