VisaThe world’s largest payment systems such as , Mastercard and PayPal have announced that they are suspending their operations in the country, citing Russia’s continued aggression against Ukraine.
According to the press release, Visa has started preparations to halt trade in Russia, but it will take a few days to complete the process. MasterCardsaid it would suspend all network services in Russia sending military forces to Ukraine at the end of February.
“Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country, and Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation,” said Andy Gerlt, vice president of Global Communications.
Al Kelly, President and CEO of Visa Inc., stated in a press release that the company was “forced to take action after Russia invaded Ukraine for no justification and after the unacceptable events we have witnessed.” We are truly sorry for the impact this will have on our valued colleagues and customers, partners, traders and cardholders we serve in Russia. This war and the ongoing threat to peace and stability require that we respond in line with our values.”
Similarly, Mastercard said it will end support for all cards issued by Russian banks, in addition to blocking some Russian financial institutions, and block transactions made from cards issued outside of Russia but used at “Russian traders or ATMs.”
On Saturday, Deputy Prime Minister of Ukraine Mykhailo Fedorov, PayPal He shared on Twitter a letter sent by CEO Dan Schulman announcing a similar disruption.
Although no official announcement has yet been made by PayPal, it was stated that the cut would still “ensure the distribution of account balances in accordance with applicable law,” according to Reuters.
Cryptocurrency companies continue to resist calls to unilaterally block all Russian residents, despite calls from Ukrainian officials and lawmakers. Ukraine has requested Coinbase, Binance, Huobi, KuCoin, Bybit, Gate.io, Whitebit, and Ukraine-based Kuna to lock all their Russian accounts. Jesse Powell, CEO of crypto exchange Kraken, stated that the company will do so if it is legally required (citing that calls are not made by official law or demand).
Visa and Mastercard cards will continue to work in Russia, after credit card processors announced the suspension of operations, the central bank of Russia said:
“Transactions against them are processed in the National Payment Card System within the country and sanctions do not affect them,” he shared. “Customer funds in accounts linked to such cards are fully protected and available.”