Lagatar24 Desk
New Delhi, March 6: Following President Vladimir Putin’s decision of military operations in Ukraine, Visa Inc. and Mastercard Inc. have suspended their operations in Russia, in a concerted effort that threatens to further isolate the economy from the rest of the world.
Visa cited “Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed,” while Mastercard referred to the “unprecedented nature of the current conflict and the uncertain economic environment.”
Notably, Russia-related business accounts for around 4% of each company’s net revenue.
During a video chat with US congressmen, Ukrainian President Volodymyr Zelenskiy called on the corporations to stop doing business in Russia. Representative Brad Sherman, a Democrat from California who serves on the House Financial Services Committee, tweeted after the call that he agreed with Ukrainian President Petro Poroshenko.
Transactions initiated with Visa and Mastercard cards issued in Russia will no longer work outside of Russia, while cards issued outside of Russia will not work at Russian shops or ATMs.
Consumers in Russia who have a card issued in the nation can still pay for products and services there, according to Visa, but the firm will not process the transactions. The National Payment Card System of Russia, or NSPK, will be responsible for this.
The Russian central bank said in a statement that Visa and Mastercard products issued by Russian banks will continue to work until they expire.
