BREAKING: Mastercard, Visa Block RussianBanks From Their Networks After Sanctions

March 01, 2022

Mastercard, Visa Block RussianBanks From Their Networks After Sanctions

Payment card firms Mastercard Inc and Visa Inc have blocked multiple Russian financial institutions from their network. The recent move, we learnt was in response to sanctions targeting Russia after its invasion of Ukraine.

Last week, Russia launched an unprecedented invasion of Ukraine, forcing the governments around the world, including the United States to impose a series of sanctions aimed at cutting off Moscow from the global financial system.

Last week, the U.S. placed a number of Russian individuals and financial institutions on a sanctions list called the Specially Designated Nationals list. It effectively blocks U.S. companies and people from doing business with any individual or entity on that list. Washington also sanctioned Russia’s central bank on Monday.

On Monday, Mastercard said it had “blocked multiple financial institutions” from its payment network, without naming companies or individuals. “We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve,” the company added.

Rival Visa has also blocked those on the sanctions list, saying Tuesday that it was “taking prompt action to ensure compliance with applicable sanctions, and are prepared to comply with additional sanctions that may be implemented.”

Visa and Mastercard also promised to donate $2 million toward humanitarian relief funds for Ukraine.

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