The continuing conflict between Russia and Ukraine has the world at a standstill, especially now that the global economy is affected. In a move to show its support to Ukraine and stop what many call an unnecessary war, many global companies have started to withdraw services from Russia. Here’s what we know:
Two of the world’s largest payment processing companies and credit card providers, Visa and Mastercard, announced at the beginning of the month that they will suspend operations in Russia after March 9.
American Express also took the same position the following day, adding to a growing list of sanctions against Russia for waging war against Ukraine.
This means that cards issued by Russian banks will no longer be able to process payments under their network, especially purchases and transactions on foreign websites and overseas. Cards issued by non-Russian banks will also not work when used with Russian ATMs and merchants.
In a statement, Visa CEO and Chairman Al Kelly explained this move:
“We are compelled to act following Russia’s unprovoked invasion of Ukraine and the unacceptable events that we have witnessed.
This war and the ongoing threat to peace and stability demand we respond in line with our values.”
The company’s foundation also offered a $2 million grant to the U.S. Fund for UNICEF to help with humanitarian aid to Ukraine.
With many tech companies making the move to suspend operations in Russia, movie streaming giant Netflix also announced that it will stop providing its services to the country.
This is not only in line with Russia’s conflict with Ukraine but also against a new Russian law that requires all streaming companies to host 20 Russian propaganda channels. The company also said that it will suspend all its future projects in the country.
Another payment processing giant PayPal has announced that it will completely withdraw services from Russia to show its support to Ukraine.
In a letter addressed to Deputy Prime Minister Mykhailo Fedorov, PayPal CEO and President Dan Schulman said:
“PayPal supports the Ukrainian people and stands with the international community in condemning Russia’s violent military aggression in Ukraine.
Under the current circumstances, we are suspending PayPal services in Russia. We are also doing all that we can to support our staff in the region during this deeply difficult time.”
A lot of other companies are following suit in what is now a global call to boycott Russia because of its move against Ukraine that continues to displace and kill thousands of Ukrainians.
That is why businesses also need to be smarter when it comes to choosing the right high-risk merchant account providers to help secure their operations even with the sudden shifts in the market because of the continuing conflict between Russia and Ukraine.
As we watch the events unfold, we also look at the many Western companies that continue to show their support to the Ukrainian people as they fight for survival in a war that’s tearing their country apart.