Mastercard, Visa restrict Russian banks from payment networks after sanctions

• Visa and Mastercard commit $2 million to Ukraine's humanitarian aid efforts.

• US, UK, Europe, and Canada imposed sanctions against Russia, including the denial of access to the SWIFT 

Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) announced that they had blocked several Russian financial institutions from their payment networks following Western sanctions amid Moscow’s invasion of Ukraine

Mastercard said on Monday “it had blocked multiple financial institutions from the Mastercard payment network.” “We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve,” the company said. 

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Both payment companies committed to contribute $2 million to Ukraine rescue efforts, saying they would continue to cooperate with regulators to impose any additional restrictions.

Visa said on Tuesday that it is “taking prompt action to ensure compliance with applicable sanctions, and are prepared to comply with additional sanctions that may be implemented,” CNBC quoted. 

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Following Russia's invasion of Ukraine, countries throughout the globe-imposed sanctions on the Russian government, corporations, financial institutions, and high-profile people. 

The United States placed several Russian persons and financial entities on the Specially Designated Nationals list last week. It prohibits American corporations and individuals from doing business with anybody on the list. On Monday, the United States sanctioned Russia's central bank.

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On Saturday, the US, UK, Europe, and Canada imposed further sanctions against Russia, including the denial of access to the SWIFT international payment system to some lenders.

Due to these various sanctions on Sunday and Monday, Russians were standing in long queues for hours outside ATMs as they fear that their bank cards might stop working or that banks would limit cash withdrawals.

Picture Credits: Forbes