Visa and Mastercard are temporarily suspending their business in Russia in response to the Ukraine war. For Russian citizens, this should make everyday payment transactions more difficult. Russia’s largest bank only speaks of “restrictions”.
It is a move that will affect many Russian citizens and foreigners in Russia: the world’s two largest credit card providers, Visa and Mastercard, will cease trading in Russia. The process should take a few days. After that, cards issued in Russia would no longer work abroad. Credit cards issued by financial institutions outside the country would then no longer be able to be used in Russia, it said. Visa CEO Al Kelly said he regretted the impact on customers, partners, merchants and cardholders. But the CEO emphasized: “This war and the ongoing threat to peace and stability require that we respond in accordance with our values.” Mastercard also regretted the step and announced that it would continue to pay the approximately 200 employees in Russia and – as soon as appropriate and legally possible – resume operations.
Corporations meet Zelenskyj’s demand
The two credit card giants are thus complying with a request made by Ukrainian President Volodymyr Zelenskyj: he had requested this step at a video conference with US MPs on Saturday. In addition, Zelenskyy urged to impose import bans on Russian oil and gas. However, the US government has so far rejected this. In a telephone call between US President Joe Biden and Zelenskyj, both welcomed the decision by Visa and Mastercard.
Sberbank: Payment transactions still possible
Russia’s largest bank – Sberbank – tried to calm down after the announcement of the two US companies. Your customers will still be able to withdraw cash and make transfers. According to the information, the money cards with the “Mir” logo should continue to work in Turkey, Cyprus and some other countries. “Mir” is a payment system operated by the Central Bank of Russia. The shutdown of Visa and Mastercard will also have no effect on payments within Russia in shops, online trade or transfers, Sberbank said. The banking transactions could be done independently of the international systems, it said. Payments abroad would be “restricted”. The bank has not yet been subject to sanctions. Anyone who lives abroad should still use the opportunity to withdraw money or pay for larger expenses. Mastercard and Visa carried out three quarters of the payment transactions with debit and credit cards in Russia in 2020, according to the specialist journal “Nilson Report”. The two companies are already no longer handling transactions with banks subject to international sanctions.
