What began on a July weekend has grown into a month-long wave of attacks stretching from Moscow and St. Petersburg to cities in the south and all the way to the Ural Mountains. But the targets were not refineries, ports or arms factories, but warehouses that keep online shopping running across Russia.

Ukraine’s drones have pummeled the giant depots belonging to Wildberries, Russia’s biggest online retailer, burning billions of dollars’ worth of merchandise and bringing the war home to the broad public.

The attacks on about 20 Wildberries facilities have underlined Kyiv’s ability to strike far and wide inside Russia and posed a new challenge to President Vladimir Putin nearly four-and-a-half years into his full-scale invasion of Ukraine.

They have badly shaken the empire built by Tatyana Kim, the country’s richest female entrepreneur, whose fortune has been estimated at $8.1 billion.

Hundreds of thousands of individual sellers have lost their merchandise, sending shock waves across Russia’s economy. Wildberries has drawn massive loans from VTB and other banks as it expanded and likely will have trouble repaying them, putting more pressure on the financial system.

Online giant began in Moscow apartment

Kim, 50, was born in Grozny, the capital of the province of Chechnya, to an ethnic Korean family of an engineer and a teacher. She launched Wildberries in 2004 from her Moscow apartment soon after giving birth to her first child while working as an English teacher.

“The idea was born from my own needs, and turned out to be needed by hundreds of thousands,” said Kim, now a mother of seven. “If a product or service makes your own life easier, you’re on the right track.”

Wildberries initially sold clothing before expanding to appliances, household items, cosmetics, books and more. The platform with its distinct purple logo has become an undisputed leader in e-commerce, accounting for about half of all online orders in Russia. Businesses big and small use it to store, ship and deliver merchandise across the country’s 11 time zones.

An estimated 500,000 to 800,000 sellers use Wildberries, often described as Russia’s Amazon. After Western brands fled following the war in Ukraine, online retailers filled the void with merchandise from China, Turkey, the United Arab Emirates (UAE) and elsewhere.

The company also acquired a bank, expanded to tourism and even considered buying an airline.

In 2024, Kim divorced her husband, Vladislav Bakalchuk, triggering a fight for control of the company. Bakalchuk sought the support of Chechen leader Ramzan Kadyrov and his feared paramilitary forces but eventually lost the battle, which peaked in a shootout at a business center near the Kremlin that left two people dead and several wounded.

Wildberries depots easy targets

The company has prided itself on relying on about two dozen mammoth warehouses as the core of its vast logistical network, stockpiling the goods before shipping to about 100,000 storefront distribution points nationwide.

Rival online retailers Ozon and Yandex Market use smaller depots spread over a wider network.

As Ukraine embarked on a strategy of using long-range drones to attack deep inside Russia, it has expanded from striking military bases, oil refineries and other infrastructure to Wildberries warehouses, which provided particularly soft targets.

Since the first attack July 18 in Elektrostal, just east of Moscow, and in the southwestern Tambov region, Wildberries depots burned one after another in massive fires that flooded social media.

The depots, some as big as 300,000 square meters (about 3.2 million square feet), were unprotected and easy to set ablaze. It took three days to extinguish the fire in the Elektrostal depot, the Moscow region’s main hub.

“These are not military and high-value political targets; therefore, they’re not especially secured, they’re not really built to be able to shrug off drone strikes,” said podcaster Mark Galeotti, a Russia expert who heads the Mayak Intelligence consultancy.

The strikes have stretched from the European part of Russia to Yekaterinburg, over 2,000 kilometers (about 1,250 miles) from Ukraine’s border.

There’s scarce public data, but some estimates indicate that up to 20% of the company’s total warehouse space has been destroyed, with assessments of losses running as high as $6 billion.

Kim said Wildberries’ sites have been “reinforced and strengthened” defensively, but the attacks continued. Some warehouses suffered only minor damage, and Ukraine tried to hit them again.

Wildberries said it’s rearranging supply chains to create “partner hubs” for storing merchandise – a long and challenging process, given its dependence on big depots.

Attacks’ ripple effect

Ukrainian officials have said Wildberries sells gear and technical components, including drones, to the military. Moscow denied it, but such dual-use items as drone components, flak jackets or thermal weapon sights remain available on the platform.

Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, said the attacks were designed to disrupt military supplies, breed popular discontent and cause a domino effect in the Russian economy by putting stress on major banks, including VTB and Sberbank, that made massive loans to Wildberries.

Wildberries’ debts were estimated at the equivalent of about $15 billion at the end of 2025.

Russia’s small and medium businesses have already been hit hard by tax increases, regulatory hurdles and, most recently, a fuel crisis from attacks on oil refineries.

The strikes on Wildberries have further exacerbated the business environment, said Chris Weafer, CEO of Macro-Advisory Ltd. Consultancy.

“I wouldn’t say it’s a nail in the coffin because we’re not there yet, but it’s certainly another enormous difficulty on top of what has already been a very difficult situation for small enterprises,” Weafer said.

Wildberries had recently changed its seller policy, exempting it from liability for stock damaged by a “force majeure” that includes drone attacks.

Kim pledged to support sellers with discounts on storage, free transfer of goods to other sites, discounted loans and other measures. Wildberries also issued some reimbursements, but they covered only a fraction of the losses.

Russia’s Central Bank has asked lenders to restructure loans to small and medium businesses that lost merchandise.

Meanwhile, many owners of Wildberries pickup points face lost revenue amid the plunging deliveries. Some vented frustrations on social media about going out of business.

The lost goods mean tens of thousands of small businesses can’t continue to operate, service their loans or pay taxes. Many are pleading for government support.

Galeotti said the strikes reflected Kyiv’s effort to bring the war home to Russia.

“It’s not just about seeing great clouds of black smoke over your cities because of some oil refinery on the outskirts being hit,” he said. “You might be a small business whose inventory has just gone up in smoke in one of the Wildberries’ warehouses. Or else you just simply might be an ordinary consumer who just suddenly is no longer going to get the goods that you plan to buy.”

Some analysts warn that instead of provoking discontent, the attacks could fuel stronger anti-Ukrainian and anti-Western fervor.

The Wildberries attacks have played into the hands of Russian hawks who urge escalating the war, said pro-Kremlin political expert Sergei Markov.

“It strengthens the view that it’s necessary to hit Europe,” he said. “And better sooner than later.”

Former President Dmitry Medvedev sought to stir up anger at Ukraine for trying to destroy an essential part of the daily routine for millions.

“Our enemy is fighting not the Russian leadership or the army, but ordinary citizens,” he said.

U.S. President Donald Trump is vowing to increase economic pressure on Iran and Treasury Secretary Scott Bessent has said Washington would introduce measures against Tehran “never been seen” as early as this week.

The United States, United Nations and ​European Union have applied sanctions, implemented trade embargos and frozen assets since the late 1970s over Iran’s nuclear program, human rights violations and support for militant groups.

Since the Iran war began in February, Washington ⁠has levied additional maritime, energy and financial sanctions and started a naval ⁠blockade.

Data from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) shows the agency has imposed sanctions on more than 1,000 people, vessels and aircraft since Trump began his second term.

Recent measures have targeted Iran’s shadow oil fleet; shipping insurers; entities and ​people enabling Iran’s acquisition of weapons; and digital exchanges, freezing an estimated $500 billion in Iran-linked cryptocurrency.

Experts say ​the ⁠Trump administration also could try these options.

Sanctions on Chinese ‘teapot’ refiners

Chinese independent refineries known as “teapots” account for a quarter of Chinese refinery capacity. They operate with narrow and sometimes negative profit margins.

China buys more than 80% of Iran’s shipped oil, according to 2025 data from analytics firm Kpler. Independent refiners absorb much of this trade, exposing them to so-called secondary measures that penalize entities helping a primary sanctions target.

Past U.S. sanctions have deterred larger independent refiners from buying Iranian oil. But the independent refineries are somewhat immune since they have little exposure to the U.S. financial system, sanctions experts say.

Sanctions on Chinese banks

OFAC has imposed secondary sanctions on smaller China- and Hong Kong-based entities accused of processing billions of dollars in Iranian oil and helping to fund weapons procurement.

Treasury has warned two larger Chinese banks they could face secondary sanctions if Iranian funds were found moving through their systems, but has stopped short of designating them.

Hitting those two banks, which U.S. officials have not publicly identified, or imposing other ⁠sanctions ⁠could have a chilling effect on bigger financial institutions, sanctions experts said, although they warned it could also trigger retaliatory actions by Beijing.

Trump administration officials have sought to play down tensions between Washington and Beijing ahead of an expected meeting between Trump and President Xi Jinping later this year.

They worry that China could curtail exports of critical minerals that are essential to advanced technology production at a time when the U.S. and Western allies are still trying to develop their own supplies.

‘Whack-a-mole’

The United States could continue targeting Iranian individuals and entities, as well as others in China and the Gulf, that are helping Tehran evade sanctions to collect revenues for its war effort.

Treasury recently issued sanctions against firms that are springing up to facilitate Iran’s trading of oil revenue for imports. But such measures amount to a “whack-a-mole” approach that ⁠has not altered Iran’s behavior, said Brett Erickson, managing principal of Obsidian Risk Advisors, noting that Tehran simply creates new entities to replace them.

Miad Maleki, a sanctions expert with the Foundation for Defense of Democracies, said Bessent was likely signaling a sharpened enforcement push against oil shippers, purchasers and currency exchangers who help Iran pay for its ​imports.

Further aviation sanctions were also possible, aimed at degrading Iran’s ability to move trade now that the U.S. has blockaded shipping via the Strait ​of Hormuz, he added.

Land blockade

Some U.S. and Israeli officials have floated the prospect of a land blockade, which would require assistance from Iran’s neighbors: Iraq, Türkiye, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia.

The Trump administration has varying degrees of closeness with all those countries except ⁠Afghanistan, but that ‌border is mountainous ‌and extremely difficult to patrol anyway.

A land blockade could increase pressure on the Iranian people by halting their imports of food, energy and textiles, but experts say such a move would be difficult ​to execute and might not result in protests or ⁠internal pressure.

Secondary tariffs

Trump has repeatedly threatened tariffs on goods from countries that do business with Iran, ⁠although the Supreme Court struck down the legal basis for such taxes.

The Senate passed a sweeping Russia sanctions bill last week that included new ⁠Iran sanctions and would give ​Trump new tariff powers that he could potentially use against countries that aid Iran’s commerce and weapons procurement.

That legislation must still pass the U.S. House of Representatives, which could prove challenging given widespread concerns among Democrats and some Republicans about the tariff measures.

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Istanbul Airport has set new records for daily flights and passenger traffic, Transport and Infrastructure Minister Abdulkadir Uraloğlu said Monday.

Türkiye’s largest airport and one of the biggest civil aviation hubs in the world handled 1,739 flights and 290,287 passengers on Sunday.

The figures marked the highest number of daily flights and passengers ever recorded at an airport in Türkiye and Europe, Uraloğlu said in a statement.

The passenger count renews Istanbul Airport’s previous peak of 289,732 reported on the same day a week ago.

The new records further strengthen Istanbul Airport’s position as a major international aviation hub, Uraloğlu said.

“Istanbul Airport is among the world’s leading airports with its capacity, strong infrastructure and quality of service,” he noted.

“These new records once again demonstrate that our airport is further strengthening its position as a global transfer hub.”

The gleaming glass-and-steel structure along the Black Sea coast turned into one of the most important transit centers in aviation since it became fully operational in April 2019.

The hub can handle 90 million passengers a year in the current phase. The figure is nothing compared to its potential capacity to serve 200 million after completing all phases.

Istanbul Airport served record-breaking 84.4 million passengers in 2025, making it the second-busiest airport in Europe after Heathrow Airport and the eighth-busiest worldwide. It seeks to reach the 90 million mark this year.

Sabiha Gökçen also sets passenger record

Across the city, Türkiye’s second-largest airport also recorded its highest-ever daily passenger traffic on the same day.

Sabiha Gökçen International Airport said it had handled 180,914 passengers across 958 flights on Sunday.

It said it saw new daily records for international arriving and departing passengers, domestic passenger traffic, total international flights and international departures.

The airport additionally set a record for aircraft served through Passenger Boarding Bridges (PBBs). A total of 218 aircraft used the boarding bridges on Sunday, surpassing the previous daily record of 212.

Hanita Ahmad, executive director of Sabiha Gökçen, said passenger traffic had surpassed 180,000 for the first time, reflecting both strong demand for the airport and its operational capacity.

“As Sabiha Gökçen, we will continue focusing on continuously improving the passenger experience and sustainable growth in line with our vision of becoming a regional transfer hub,” Ahmad said.

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Türkiye’s central government budget swung to a deficit in July, but Treasury and Finance Minister Mehmet Şimşek said the government remains on track with its fiscal targets despite the impact of geopolitical developments.

The budget recorded a TL 378.1 billion ($7.89 billion) deficit last month, according to data from the Treasury and Finance Ministry. That follows a TL 114.2 billion surplus in June.

Budget expenditures totaled TL 1.79 trillion, while revenues reached TL 1.41 trillion in July. The primary balance posted a deficit of TL 51.3 billion, while interest payments amounted to TL 326.8 billion.

Despite the monthly deficit, Şimşek said the government was maintaining fiscal discipline and progressing in line with its budget goals.

For the January-July period, the budget registered a deficit of TL 1.32 trillion. Expenditures reached TL 10.52 trillion, compared with revenues of TL 9.20 trillion.

The government recorded a TL 470.1 billion primary surplus during the first seven months of the year, as primary expenditures totaled TL 8.73 trillion.

The primary surplus, an important indicator of the government’s fiscal position excluding interest payments, increased by TL 228 billion from the same period a year earlier, Şimşek said.

Tax revenues also continued to rise. Tax collections increased 30% year-over-year in July to TL nearly 1.24 trillion, while other non-tax general budget revenues rose 18.9% to TL 145.6 billion.

Fiscal policy to support disinflation

Şimşek said fiscal policy was being implemented with the broader disinflation program in mind.

He noted that the government had forgone a significant amount of tax revenue through the sliding-scale tax mechanism on fuel prices to help support the disinflation process. He also said the ongoing rebalancing of domestic demand had affected revenue performance.

“Despite the significant tax revenue forgone under the sliding-scale mechanism to support disinflation and the impact of the rebalancing in domestic demand on revenue performance, we are progressing in line with our budget targets,” Şimşek said.

The minister added that the government had kept its domestic debt rollover ratio at around 87%, taking financing conditions into account.

He said stronger revenue collection and tighter spending discipline had created fiscal space that would be directed toward priority areas while continuing to support the disinflation process.

“With increased effectiveness in our revenue policies and stronger spending discipline, we will continue directing the fiscal space we have created toward priority areas and supporting the disinflation process,” Şimşek said.

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Türkiye’s automotive production fell 8% year-over-year in the first seven months of 2026, while exports by volume declined 14%, as weaker passenger car output and fewer working days weighed on the sector, data showed Monday.

But industry officials said the decline partly reflects preparations by automakers to introduce new models and expand capacity, with the impact of those investments expected to become more visible in the final quarter and particularly in 2027.

Automotive Industry Association (OSD) Chair Cengiz Eroldu said some of their members were preparing their production lines for new models and capacity investments.

“When a new product is introduced to a production line, the existing production pace has to be reduced for a certain period. We consider the production loss to be a normal consequence of the transition to new investments,” Eroldu said.

Hyundai, Opel and Peugeot just recently announced new investments and launches of production of new models in Türkiye.

Hyundai on Friday started mass production of its new all-electric IONIQ 3 model at a factory in Türkiye’s northwestern Kocaeli province.

Earlier this month, Opel said it was moving production of its light commercial vehicle model Combo to Türkiye from the third quarter of this year.

In late July, Peugeot announced it would begin producing its Rifter light commercial vehicle in Türkiye beginning in the third quarter.

Production falls as passenger car output weakens

Eroldu, meanwhile, said the sector also lost around five to six working days in the first seven months compared with the same period last year because of public holidays and administrative leave.

Total automotive production reached 767,216 vehicles in January-July, down 8% from a year earlier, the OSD data showed. Passenger car production declined 19% to 424,667 units.

Commercial vehicle production, however, remained more resilient, rising 9%. Within the segment, production increased 16% for midibuses, 15% for light trucks, 8% for buses and 1% for trucks, while minibus production fell 9%.

The industry’s overall capacity utilization rate stood at 62%, with utilization at 63% for light vehicles, 69% for buses and midibuses, 57% for trucks and just 28% for tractors.

Eroldu said the differing performance across vehicle categories was significant.

“Production declines were concentrated mainly on the passenger car side, while we are seeing a more positive trend in light commercial and heavy commercial vehicles,” he said, adding that the sharp decline in tractor production and the more than 50% contraction in the domestic tractor market warranted attention.

New investments expected to lift local production

Despite the production decline, Eroldu said new investments were already beginning to support the share of locally produced vehicles in the domestic market.

The share of domestically produced vehicles in the passenger car market rose to 35% from 29% a year earlier. Locally produced passenger car sales increased 4%, while imported sales fell 19%.

In the light commercial vehicle market, locally produced vehicle sales rose 13%, lifting their share to 23%, while imported sales fell 9%.

Eroldu said the increase in the domestic share was an early indication of the impact of new investments and that the contribution should become more pronounced as production of new models ramps up.

“The positive impact of new models entering production and export programs will become apparent in the final quarter of the year and, more significantly, in 2027,” he said.

Export volumes decline, but revenue remains resilient

Automotive exports fell 14% by volume to 542,401 vehicles during the first seven months, according to the OSD data. About 71% of total production was exported.

Passenger car exports dropped 29% to 255,679 units, while commercial vehicle exports increased 8%. Tractor exports rose 20% to 7,792 units.

Despite the decline in unit exports, export revenue continued to increase. According to Türkiye Exporters Assembly (TIM) data, total automotive exports rose by around 2%-2.6% in dollar terms to approximately $24 billion.

Uludağ Automotive Industry Exporters’ Association data showed passenger car export revenue fell 9% to $6.3 billion, while exports by main manufacturers increased 0.1% and those by suppliers rose 4.5%.

Automotive remained Türkiye’s leading export sector, accounting for 17% of total exports.

Domestic market contracts, but local share increases

The total automotive market shrank 11% year-over-year to 661,249 vehicles in January-July. Passenger-car sales fell 12% to 502,712, while the commercial vehicle market contracted 5%.

Heavy commercial vehicle sales declined 8%, but bus sales rose 23% and midibus sales increased 14%.

Eroldu noted that despite the market contraction, the sector remained significantly above its long-term averages. Compared with the previous 10-year average, the total market was 31% higher, the passenger car market 32% higher, the light commercial market 30% higher and the heavy commercial market 22% higher.

Europe remains key to industry’s outlook

Eroldu said the performance of the domestic market, demand and competitive conditions in Europe, and the implementation of new models would be critical for the remainder of the year.

He expects full-year production and exports to remain somewhat below 2025 levels but relatively close to last year’s performance.

Looking ahead to 2027, the sector will focus on domestic demand, global vehicle demand, China’s competitive pressure, cost pressures, excess capacity and the European Union’s proposed Industrial Acceleration Act (IAA).

Europe accounts for around 70% of Türkiye’s automotive exports, making the outcome of the IAA negotiations particularly important for Turkish manufacturers and suppliers.

“We expect the negotiation process to extend into 2027,” Eroldu said, stressing that Türkiye’s automotive industry is deeply integrated with Europe’s manufacturing, investment and supply chains.

He said the industry wants Türkiye to be treated within the EU framework as a customs union partner and an integral part of the European automotive value chain, covering both vehicle manufacturers and suppliers.

Eroldu also said that reducing cost pressures caused by the gap between exchange rates and inflation, improving exporters’ access to finance and maintaining predictability in the investment environment would be crucial to the industry’s competitiveness in 2027.

Japan’s economy lost momentum in the second quarter and fell short of market forecasts, as subdued household and business spending highlighted the fragility of the recovery as the war in the Middle East darkens the outlook.

However, ⁠long-term bond yields hit a three-decade high as investors brushed aside the soft reading as reflecting one-off factors, and focused more on mounting inflationary risks that could prod the Bank of Japan (BOJ) to raise interest rates next month.

Gross domestic product (GDP) rose 1.1% in annualized terms, government data showed on ⁠Monday, missing a median market estimate of 2% and below an upwardly revised 1.9% expansion in the previous quarter.

While the data revealed some temporary soft patches in demand, analysts say robust underlying momentum and persistent price pressures are likely to keep the case for imminent interest rate hikes intact.

“Today’s GDP data was a bit weak but the economy is likely to continue recovering moderately,” said Naoki Hattori, chief Japan economist at Mizuho Research Institute. “Given risks of underlying inflation overshooting its target, the BOJ is likely to proceed with a rate hike next month.”

The BOJ is expected to raise rates as soon as September and is said to be considering hiking more aggressively thereafter to avoid being behind the curve on inflation.

The benchmark 10-year Japanese government bond (JGB) yield rose for a sixth straight session on Monday to hit a 30-year high of 2.925%, as investors continued to price in BOJ rate hikes sooner and faster than earlier expected.

Private consumption was the biggest disappointment in the GDP data, falling 0.02% versus market expectations for a 0.5% increase, the first drop in eight quarters.

Analysts ⁠said ⁠the weakness was due in part to lower school fees households paid thanks to subsidies, which pushed down headline private consumption but lifted government spending.

Capital spending, a key driver of private demand, fell 1.2% in the second quarter, confounding market forecasts for a 0.4% increase. However, capital expenditure, as well as overall preliminary GDP, tend to be revised higher with updated figures.

Exports remained resilient thanks to solid U.S. demand for Japanese hybrid vehicles and sustained global investment in artificial intelligence that supported shipments of semiconductor-related equipment and components.

Net external demand, or exports minus imports, added 0.5 percentage point to growth, largely because imports fell sharply after temporary disruptions to crude oil shipments through the Strait of Hormuz.

“I don’t think the BOJ would be too worried about today’s GDP data as the economy is showing remarkable resilience to headwinds from the Iran war,” ⁠said Yoshiki Shinke, senior executive economist at Daiichi Life Research Institute.

The government maintained its sanguine view on the economy.

“The economy remains on a moderate recovery path, with export-driven growth offsetting weakness in domestic demand,” Economy Minister Minoru Kiuchi said in a statement.

Outlook murky

Looking ahead, analysts cautioned that rising import costs and mounting upstream price pressures could eventually feed through ​to consumers, posing a risk to spending later this year.

Aside from rising fuel costs from the Middle East conflict, a weak yen has ​lifted import prices and broader cost-of-living for households, posing a headache for policymakers.

Such price pressures have led to a flurry of hawkish comments from BOJ policymakers that bolstered the case for an early rate hike.

The government has sought to cushion the blow to households from ⁠rising living costs with ‌subsidies, though ‌rising bond yields may prevent it from ramping up fiscal spending any further, some analysts say.

That spells trouble ⁠for consumption, which is mostly holding up so far as a tight job market ‌prods firms to offer higher pay.

“Government subsidies have helped contain consumer inflation so far, but a weaker yen and higher crude oil import costs raise the likelihood of broader price hikes ​from the autumn onward,” said Takeshi Minami, chief economist ⁠at Norinchukin Research Institute.

A survey this month by the Japan Center for Economic Research showed 37 economists forecast ⁠annualized GDP growth to slow to an average 0.05% in the July-September quarter.

“The boost to consumption from policy measures is already fading, and inflation ⁠will increase in H2 as firms ​will pass on increased costs, deteriorating consumers’ purchasing power,” Oxford Economics wrote in a research note.

“Although AI-related goods exports will continue to stay robust in the near term, sluggish non-AI related global economic activities will limit overall export gains.”

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