Visa and Mastercard Block Russian Financial Institutions Following Sanctions

Financial services providers and digital card payment companies Visa Inc. (V) and Mastercard Inc. (MA) have both blocked various Russia based financial institutions from their network as a way of complying with the sanctions imposed by the government of United States against Russia following its invasion into Ukraine.

In the beginning of the week, Visa announced that it was taking a prompt action to ensure compliance with the sanctions imposed financial sanctions further adding that it will be donating $2 million for humanitarian aid.

Equally, Mastercard also pledged to donate $2 million to help with humanitarian servicers in war torn Ukraine. The company also vomited itself to fully complying with necessary obligations as events continue to unveil.

We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve,” said Mastercard.

The applicable sanctions require Visa and Mastercard to suspend its networks for entities enlisted as Specially Designated Nationals. United States government has been adding various  Russian financial firms to the list including Russia’s Central Bank and the country’s second largest commercial bank VTB Bank (MCS: VTBR).

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