Monday, December 5, 2022
Home Tech News Visa and Mastercard block Russian financial institutions

Visa and Mastercard block Russian financial institutions

On Saturday, the US, Britain, Europe and Canada announced new sanctions on Russia. (Images Source: AFP)

American card payment companies Visa and Mastercard have blocked multiple Russian financial institutions from their network, complying with US government sanctions imposed over Russia’s invasion of Ukraine.

On Monday, Visa said that it was taking prompt action to ensure compliance with applicable sanctions, adding that it would donate £1.4 million for humanitarian aid.

‘We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve,’ Mastercard said in a separate statement late on Monday, adding that it would also contribute $2 million.

In 2021, about 4% of Mastercard’s net revenues were derived from business conducted within, into and out of Russia. Meanwhile, business conducted within, into and out of Ukraine accounted for 2% of its net revenues, according to a filing on Tuesday.

For the latest updates on the Russia-Ukraine war, visit our live blog: Russia-Ukraine live

The American government sanctions require Visa to suspend access to its network for entities listed as Specially Designated Nationals, a source familiar with the matter told Reuters.

On Monday, a senior Biden administration official told CNBC the measure would take effect immediately following intelligence that the central bank was trying to move its assets out of foreign countries.

America added various Russian financial firms to the list, including the country’s central bank and second-largest lender VTB.

On Saturday, the US, Britain, Europe and Canada announced new sanctions on Russia, including blocking certain lenders’ access to the SWIFT international payment system.

Russians rushed to ATMs and waited in long queues on Sunday and Monday amid concerns that bank cards may cease to function, or that banks would limit cash withdrawals.

International people in Russia report not being able to withdraw money using their cards.

Mykhailo Fedorov, Ukraine’s Vice Prime Minister, called on Visa and Mastercard to completely exit from Russia and not just sanctioned banks.

Russians can no longer use their bank cards with Google Pay and Apple Pay as newly-imposed financial sanctions took effect on Monday.

MORE : What does the UK import from Russia and what will the sanctions impact?

MORE : Ukraine’s Deputy Prime Minister asks PlayStation and Xbox to block Russia

- Advertisment -

Most Popular

Taylor Swift fans sue Ticketmaster over ‘disastrous’ presale debacle

There’s Bad Blood between Swifties and Ticketmaster. A group of Taylor Swift fans have taken legal action against Ticketmaster and its parent company Live Nation...

You can get the Samsung Galaxy Watch 5 Pro for its lowest price yet at Best Buy

Deals/Tech / Plus get discounted bundles on Logitech MX accessories and Apple’s second-gen Airpods Pro earbuds.The Pro model of the Galaxy Watch 5 has...

Accenture and AWS deepen years long partnership at re:Invent 2022

Last week at Re:Invent 2022, IT (information technology) services and consulting company Accenture launched Velocity, a jointly funded and co-developed platform with Amazon Web...

Peterborough health unit warns a ‘bad batch’ of drugs is circulating in area

Peterborough Public Health issued another alert following an increase in suspected drug poisonings on the weekend. On Saturday, the health unit received reports that a...