Visa and Mastercard have announced the suspension of operations in Russia.
Visa and Mastercard have stated that they would be suspending operations in Russia. TASS has reported on it.
Visa's press department said that efforts are presently ongoing to halt all transactions in Russia.
According to Mastercard's press department, the decision to cease network operations was made in response to the imposition of anti-Russian sanctions. According to the press release, "this move indicates that cards issued by Russian banks will no longer be supported by the Mastercard system."
It should be reminded that Mastercard cards issued in Russia will not operate, and those issued outside the nation will not be accepted at Russian Federation retail establishments and ATMs. Mastercard expects to restart operations when "it is suitable" and "permitted by legislation," according to the business.
Further operation of Visa and Mastercard cards in Russia
Sberbank's Visa and Mastercard cards will continue to operate in Russia following the suspension of the country's payment systems, according to the bank's explanatory letter.
Customers will be able to conduct transactions throughout the nation, including cash withdrawals, card number transfers, and payment in both physical and Russian internet retailers. According to the bank, all payments in Russia are routed through the domestic NSPK system and are not dependent on international payment solutions.
Payments made overseas and in foreign online businesses using Visa and Mastercard cards issued in Russia, on the other hand, would be restricted.
The Central Bank (CB) stated that all VISA and Mastercard cards issued by Russian banks will continue to function normally in the country until their expiration date. Customers' funds on accounts connected to such cards, according to the Central Bank, are completely maintained and available.
Issuance of new Visa and Mastercard cards
The National Payment Card System (NSPK) declared on March 1 that Russian banks subject to sanctions will cease issuing new Visa and Mastercard cards. We're talking about the banks VTB, Sovcombank, Novikombank, Promsvyazbank, Otkritie, and Rossiya.
It should be emphasised that previously issued cards will operate within the nation. The NSPK also stated that all bank clients' monies are saved in their accounts and that all operations are available.
Disconnecting banks from SWIFT
The European Union (EU) deactivated seven Russian banks from the SWIFT international payment system on March 2: VTB, Rossiya and Otkritie banks, Novikombank, Promsvyazbank, Sovcombank, and VEB.RF.
Euro banknotes were also prohibited from being sold, supplied, transferred, or exported to Russia. It is stated that the exclusions include usage by people for personal purposes, diplomatic missions, and international organisations that enjoy legal immunity under international law.
On March 4, the European Union's representative for foreign affairs and security policy, Josep Borrell, stated that the EU is looking into the prospect of disconnecting new Russian banks from SWIFT. According to him, the most essential thing for him right now is to exploit the penalties that have already been put on Moscow.
Borrell went on to say that a decision on additional punishment might be taken in the coming days. He also hinted at the prospect of further financial measures.