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Visa and Mastercard logos: the two largest credit card providers are withdrawing from Russia
Photo: Beata Zawrzel / imago images / NurPhoto
Because of the Russian invasion of Ukraine, the world's two largest credit card providers, Visa and Mastercard, are suspending their business in Russia.
Visa will work with customers and partners in Russia "to stop all Visa transactions in the coming days," the company said on Saturday.
After that, cards issued in Russia would no longer work abroad.
Credit cards issued by financial institutions outside the country could no longer be used in Russia.
Ukrainian President Volodymyr Zelenskyy called for the suspension of Mastercard and Visa operations in Russia during a video conference with members of the US Congress on Saturday.
According to parliamentarians, because of the Russian invasion of his country, Zelenskyy appealed to the West to impose an import ban on Russian gas and oil.
Visa CEO Al Kelly said he regretted the impact the measure will have on employees, customers, partners, merchants and cardholders in Russia.
"This war and the ongoing threats to peace and stability require that we respond in accordance with our values."
Mastercard, the industry's second-biggest company, announced the same move, citing the "unprecedented nature of the current conflict and uncertain economic environment" in Russia.
The decision was not made lightly.
"Mastercard has been operating in Russia for more than 25 years," the statement said.
The almost 200 employees will continue to be paid their wages.
If it is “reasonable and legally permissible”, they want to resume operations.
Maps continue to work in Russia
Visa and Mastercard had previously stopped processing transactions for Russian banks affected by international sanctions over the Ukraine war.
Visa and Mastercard accounted for around 74 percent of debit and credit card payments in Russia in 2020, according to industry publication Nilson Report.
Both companies make the equivalent of around one billion euros in sales in the country.
Russian banks tried to downplay the impact of Mastercard and Visa's announcements on Russian customers.
"All Visa and Mastercard bank cards issued by Russian banks will function normally on Russian territory until their expiry date," the Central Bank of Russia said.
However, Russians traveling abroad needed alternative means of payment.
Sberbank wrote in its official Telegram messenger channel that the cards could still be used on Russian territory "to withdraw money, make transfers using the card number and to pay in Russian offline and online shops".
Exodus of international companies
The West has imposed tough sanctions on Russia over Russia's invasion of Ukraine.
The country's banking sector and airlines are among those affected.
Kremlin chief Vladimir Putin and other government officials and oligarchs are also on the sanctions lists of the EU, Great Britain and the USA.
Since the invasion of Ukraine began ten days ago, numerous international companies have halted their business in Russia, including the chip maker Intel, the housing broker Airbnb and French luxury brands such as Hermès and Chanel.
goodbye/AFP/dpa