This is a major and powerful move. The move by the payment companies comes amid a growing corporate backlash over Russia’s actions in Ukraine. In response to Russia’s invasion of Ukraine, Visa, Mastercard, and American Express have announced that all operations in Russia will be suspended.
The impact on consumers, though, has already been minimized by Russia’s big banks. Until the cards’ expiration dates, shoppers will be able to use them to make purchases in Russia.
Following the fall of the ruble and the failure to open the stock market for fear of the consequences, this action is expected to be another severe financial blow to Russia.
NATO countries have consistently stated that they will not send troops to help Ukraine repel the invaders, but they have backed a large wave of penalties against firms and billionaires with ties to Putin’s regime.
According to Sky News, an increasing number of companies are severing relations with Russia in the aftermath of Putin’s invasion, since several countries have implemented harsh economic penalties.
While the invasion of Ukraine continues, Visa and Mastercard have joined the boycott of Russia, which includes Apple, Microsoft, PayPal, and even IKEA.
Visa chief executive Al Kelly said the company felt ‘compelled to act’ after ‘Russia’s unprovoked invasion of Ukraine’, while Mastercard described the current conflict as ‘shocking and devastating’.
Mastercard said they hoped the ‘difficult days’ would give way to a ‘more positive, productive and peaceful future for us all’.
Meanwhile, despite Putin’s invasion of Ukraine, which killed thousands and forced over a million people to evacuate the nation, a number of bitcoin platforms have stated that they have no plans to isolate Russia.
Coinbase and Binance have consistently stated that Russian customers will not be barred from their platforms, raising concerns that affluent individuals may attempt to circumvent sanctions by using cryptocurrencies to avoid having their assets frozen.
According to Brian Armstrong, CEO of Coinbase, “I don’t think many people in Russia will be able to use cryptocurrencies to get over sanctions.”
PayPal also said on Saturday that it has shut down services in Russia, but that withdrawals would be supported “for a limited time.”
It stated that account balances would be distributed “in accordance with applicable rules and regulations.”
PayPal had been asked by the Ukrainian government to leave Russia and assist its officials with fundraising.
Source: ladbible.com
