US credit card companies Visa, Mastercard and American Express announced over the weekend the suspension of their operations in Russia due to its invasion of Ukraine.
Source: AFP
“In light of Russia’s ongoing unwarranted attack on the people of Ukraine, American Express is suspending all operations in Russia,” American Express said in a statement on Sunday.
“We are also suspending all business operations in Belarus,” he added.
On Saturday, Visa and Mastercard announced a similar move.
Mastercard said it decided to “suspend our network services in Russia,” “taking into account the unprecedented nature of the current conflict and the uncertain economic environment.”
For its part, Visa indicated that it will work “immediately” with its “customers and partners inside Russia to stop all Visa transactions in the coming days.”
“We have an obligation to act following Russia’s unprovoked invasion of Ukraine and the unacceptable events we have witnessed,” Visa CEO Al Kelly was quoted as saying in a statement.
“Our colleagues, our customers and our partners have been affected in ways most of us cannot imagine,” Mastercard said on its side.
Russian Visa, Mastercard and American Express bank cards will no longer work abroad, while those issued abroad will no longer work in Russia.
In recent days, the three firms had taken steps to prevent Russian banks from using their networks, in application of international sanctions decided after the Russian invasion of Ukraine.
RUSSIAN BANKS DISMISS EFFECTS
Russia’s biggest banks, including Sberbank, the country’s biggest lender, and Russia’s Central Bank, played down the effects the card suspensions would have on their customers.
“All Visa and Mastercard bank cards issued by Russian banks will continue to function normally on Russian territory until their expiration date,” the Russian Central Bank said.
While Sberbank reported that the cards “can be used for operations on Russian territory, for cash withdrawals, making transfers using the card number and for payments in Russian stores, both online and offline.”
They will continue to operate on Russian soil because all payments in Russia are made through a national system and do not depend on foreign systems, the bank said in a statement released on its official Telegram account.
However, the Central Bank warned that Russians traveling outside the country should consider alternative methods of payment.
On his side, US President Joe Biden “welcomed the decision” during a phone call with his Ukrainian counterpart, Volodimir Zelenski, in which both discussed actions to be taken by the United States, private industry and allies to dissuade Russia from his aggression, according to the White House.
Mastercard indicated that it will continue to pay and provide benefits to its almost 200 employees in Russia.
Meanwhile, the online payment company Paypal also interrupted its services in Russia.
Ukrainian Deputy Prime Minister Mykhailo Fedorov tweeted a letter from Paypal CEO Dan Schulman officially announcing the suspension. “Under the current circumstances, we are suspending Paypal services in Russia,” Schulman wrote.
He added that PayPal would continue to support its staff in the region and would focus on “enabling our customers and global community of employees to support” humanitarian efforts in Ukraine.
Major corporations in a range of sectors have halted business in Russia following the invasion of Ukraine ten days ago, from US-based tech firms like Intel and Airbnb to French luxury giants like LVMH, Hermes and Chanel.
