With the invasion still ongoing in Ukraine by the Russians, many companies globally have decided to put sanctions on the Russian government. Companies no longer want the business of aggressors who are causing global issues. One of those companies has been the major banking company Mastercard who felt it was only right due to the events to stop working with Russia.
How will this affect things in Russia?
Russia have long been a big player in the financial world and these sanction come as a major shock to the system for many who were living with the freedom to be flexible with their money. However, this sanction will have massive effects on the people living in Russia.
Despite stating earlier that all Mastercard issued cards in Russia would still work with, the Russian banks have now had to tell its people that this will not be the case and that Mastercard will no longer work at shops or ATMs. It also means that clients can no longer use them for international payment as well, this could include eBay purchases or trading forex with your Mastercard.
Who else has followed suit?
It will come as no surprise that American Express and Visa have also followed Mastercard in their protest of the Russian invasion. With Visa and Mastercard controlling about 90% of credit and debit payments in the world, outside of China it has come as a major blow despite what the Russian banks are telling their people.
However, with these companies feeling like they are stopping the main perpetrators they are actually attacking the normal people of Russia who cannot make the payments they need to. It is a difficult situation for companies to be in.
But the US President, Joe Biden, has backed the decision by the big financial players. Biden “welcomed the decision” during a phone call with Ukrainian leader, Volodymyr Zelensky.
What has Mastercard said?
In a statement Mastercard expressed how much they were shocked and devastated by the Russian invasion of Ukraine. They also stated that they had been working with Russia for 25 years and the company felt real sadness because it will affect their own employees.
“We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years. We have nearly 200 colleagues there who make this company so critical to many stakeholders. As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide pay and benefits. When it is appropriate, and if it is permissible under the law, we will use their passion and creativity to work to restore operations.”
Is there any comeback?
Realistically the only way these financial companies like Mastercard will return to working with Russia is if peace talks advance and Russia pull out of Ukraine. Unfortunately this is not looking likely anytime soon and it may be sometime before the Russian people will be able to use Mastercard in the country for their everyday use.