It was updated on Mar 1, 2022.
Mastercard and Visa have blocked a number of Russian institutions from their payment networks in compliance with Western sanctions, the companies announced Monday and Tuesday, as they pledged to work with regulators to enforce any future restrictions amid a tumbling ruble and run on Russian banks.
Some Russian institutions have been blocked by Visa and Mastercard.
Visa said it has watched the tragic scenes in Ukraine with deep sadness and disbelief, and is taking prompt action to ensure the company complies with sanctions against Russia.
Multiple financial institutions have been blocked from Mastercard's payment network in response to sanctions.
The list reportedly features a slew of Russian financial institutions including the country's second-largest lender VTB, Russia's central bank and entities designated as Designated National.
Both payment firms said they would work with regulators to implement any further sanctions, and each pledged to donate $2 million to the relief effort.
Russian government, businesses, financial institutions, and high profile individuals were targeted by sanctions after the invasion of Ukraine. The international financial-messaging system, known as the SWIFT, will be excluded from the sanctions from Western nations. The measures have largely unplugged Russia from the international financial system and have crippled its economy, plunging the ruble to a record low and prompting queueing outside banks and ATMs as people try to withdraw cash in case limits are put in place. Many people are planning to convert their savings to more stable currencies like the euro or the U.S. dollar.
The customers of Russian banks are no longer able to use their Visa- or Mastercard-enabled bank cards with Apple Pay and Google Pay. For some, this means they are unable to use the metro in cities like Moscow, which use payment methods that don't require a credit card.
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