Reactions to Ukraine invasion: Visa and Mastercard stop business with Russia

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 significantly more difficult.

It is a step that will directly affect many Russian citizens and foreigners in Russia: the world’s two largest credit card providers, Visa and Mastercard, will immediately cease trading in Russia.

This means: Visa and Mastercard cards that were issued in Russia itself or by foreign financial institutions can no longer be used in Russia – neither to pay nor to withdraw money.

Visa CEO Al Kelly said he regretted the impact on customers, partners, merchants and cardholders. But the CEO emphasized:

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. But the US government has so far refused to do so.

In a phone call between US President Joe Biden and Zelenskyy, 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. The shutdown of Visa and Mastercard will also have no effect on payments within Russia in shops, online trade or transfers. However, those who live abroad should still use the opportunity to withdraw money or pay for larger expenses.

According to the Nilson Report, Mastercard and Visa processed three quarters of the payment transactions with debit and credit cards in Russia in 2020. The two companies are already no longer handling transactions with banks subject to international sanctions.