It tightens more and more thereeconomic stranglehold on Russia. Visa and Mastercard have announced the suspension of their payment services in Russia. A choice that follows the one made in the last few days by other large multinationals, which left the Russian market after the invasion of Ukraine.
The stop comes after a phone call between the US president, Joe Biden, and the Ukrainian one, Volodymyr Zelensky. According to US reports, it was the Ukrainian president himself who asked for the blocking of payment cards during his remote meeting with members of Congress.
Visa's decision
Through a press release, Visa announced that the blocking of services "will take effect immediately". So starting today, Visa payment cards which were issued in Russia will no longer work in Russia and also outside the country. Not only that, all Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.
"We are forced to act following the Russian invasion of Ukraine and the unacceptable events we have witnessed," said Al Kelly, president and CEO of Visa. “We regret the impact this will have on our valued colleagues and customers, partners, merchants and cardholders we serve in Russia. This war and the continuing threat to peace and stability require that we respond in line with our values,” he added.
The stop of Mastercard in Russia
Visa's announcement was closely followed by that of its "rival" Mastercard. The New York company has decided to suspend all its services in Russia.
“This measure – explains Mastercard – implies that cards issued by Russian banks they will no longer be supported by the Mastercard system”. In addition, the company stressed, "Mastercard cards issued outside the country will not work in Russia."
Sberbank remains
Decisions by Visa and Mastercard to block transactions in Russia will not impact payment cards issued by Russian bank Sberbank. This was immediately specified by the Russian agency Tass, trying to reassure citizens. “All cards of Sberbank clients will work, it will be possible to carry out transactions on the territory of Russia – withdraw cash, make transfers by card number, pay both in offline stores and in Russian online stores,” the bank said.
