(New York) Global bank card giants Visa and Mastercard announced on Saturday that they were suspending operations in Russia after the invasion of Ukraine, which will prevent cards issued by Russian banks from working abroad. and foreign cards to work in Russia.
Posted at 5:51 p.m.
Updated at 7:24 p.m.
“Due to the unprecedented nature of the current conflict and the uncertain economic environment, we have decided to suspend our service network in Russia,” Mastercard said in a statement, adding that it would continue to pay its approximately 200 employees in the country.
Its competitor Visa simultaneously said in a separate statement that it “will work with its customers and partners in Russia to cease all Visa transactions in the coming days.”
“We are compelled to act in the wake of Russia’s unprovoked invasion of Ukraine and the unacceptable events that we have witnessed,” said Al Kelly, CEO of Visa, quoted in the communicated.
Russian Visa and Mastercard bank cards will no longer be valid abroad, and cards issued abroad will no longer work in Russia, the two companies said.
Visa and Mastercard, as well as their competitor American Express, had already taken measures to prevent Russian banks from using their networks, in application of international financial sanctions decided after the invasion of Ukraine.
The Bank of Russia has clarified that all Visa and Mastercard cards issued by Russian banks will continue to operate normally on Russian territory until their expiry date. “Transactions with these cards are managed by the national bank card system and the sanctions have no impact there,” she said in a statement.
The central bank has nevertheless recommended that Russians traveling abroad carry cash or the Russian Mir bank card in the few countries or territories where it is accepted.
The largest Russian bank, Sberbank, also claimed on its Telegram account that the Visa and Mastercard cards issued by it “can be used for operations on Russian territory – to withdraw money, make transfers with the card number, and for on-site or online payments at Russian shops”.