Visa, Mastercard blocking Russian banks from networks

Multiple Russian financial institutions are being blocked from the networks of Mastercard and Visa after governments around the world announced sanctions following Russia’s invasion into Ukraine.

“The invasion by Russian military forces over the past week has been devastating for the people of Ukraine. Our thoughts continue to be with those impacted,” Mastercard CEO Michael Miebach said in a statement on Monday.

“As a result of sanction orders, we have blocked multiple financial institutions from the Mastercard payment network. We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve,” he added.

The Mastercard chief executive also noted that $2 million would be channeled to Save the Children, the Red Cross and the company’s employee assistance fund to further aid those affected by the Russian invasion into Ukraine.  

Visa also announced on Monday that it is taking actions to work in compliance with the announced sanctions.

“Visa is taking prompt action to ensure compliance with applicable sanctions, and is prepared to comply with additional sanctions that may be implemented,” Visa said in a statement.

The credit card company added that it would also be providing a $2 million donation to the U.S. Fund for UNICEF.

“During the past few days, all of us at Visa have watched the tragic scenes in Ukraine with deep sadness and disbelief. Our hearts go out to the many people and families seeking safety, shelter and peace following the invasion of Ukraine,” the statement said.

The announcement follows several rounds of sanctions that the U.S. and other governments have imposed against Russia in response to its invasion into its neighboring country. 

The sanctions have targeted Russian President Vladimir Putin, Russia’s foreign minister, certain Russian banks from the SWIFT international banking system, Russian elites and their families, sovereign debt, and a host of financial institutions, among others.