Mastercard and Visa Cuts Russian Financial Institutions From its Network

Mastercard and Visa, the two largest payment firms in the United States have both issued separate statements on their readiness to follow established sanctions meted out against Russian financial institutions, hence have cut these outfits from their payment networks.

Per the press release published by Mastercard, the company condemned the invasion of Ukraine by Russian troops, sending out its best wishes to the affected families as well as its employees in the region.

“The invasion by Russian military forces over the past week has been devastating for the people of Ukraine. Our thoughts continue to be with those impacted. We will keep our employees in mind throughout the region as we navigate through this crisis,” the payment giant said, adding that in following the established “sanction orders, we have 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.”

Visa’s statement did not also spare to condemn what it called “tragic scenes in Ukraine,” noting its readiness to support the ongoing relief efforts in the region, done in a bid to complement ongoing donations to the region by well-meaning individuals.

Both Mastercard and Visa pledged the sum of $2 million to the efforts, and a common denominator in the statements pushed out by both firms is that they will continue to abide by the provisions of the sanctions on Russian institutions.

Mastercard and Visa: Two of Many Sanctions Russia will Face

The restriction of the Russian financial institutions from Mastercard and Visa stems from the ban of these entities from the SWIFT global payment network, as Western leaders seek more stringent isolation of Russia for its undue aggression on Ukraine.

The United States government is particularly taking the charge in terms of enacting sanctions on Russia, with the authorities notably including digital currencies in their list of restrictions levied on Russia. While Mastercard and Visa have severed ties with Russia, at least, for the time being, a slew of other companies around the world including Shell, and FlexPool, the largest Ethereum mining pool. 

In all, the goal is to bring a speedy end to the ongoing war in the region while resorting to a more diplomatic approach to ending all feuds.