According to Visa, Russian cardholders can still purchase goods and services with the credit card in their own country, but the company no longer processes the transactions. That will be done by a Russian company.
“We are forced to act after the unprovoked Russian invasion of Ukraine and the unacceptable events we have witnessed,” said Visa chief executive Al Kelly. “We regret the impact this will have on our valued colleagues and customers. , partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability require a response consistent with our values.”
Visa and Mastercard products issued by Russian banks will continue to work until they expire, Russia’s central bank said in a statement.
Visa and Mastercard have already blocked several Russian financial institutions from their network at the beginning of this month. In doing so, the American companies complied with the sanctions imposed against Russia for its invasion of Ukraine.
The sanctions would also require credit card companies to suspend access to the network for blacklisted Russians and Russian institutions. The United States and the European Union, among others, have added several Russian financial companies to the list, including the country’s central bank and the second largest lender, VTB.