If the U.S. State Department’s latest advisory of “Level 4: Do Not Travel” doesn’t stop you from visiting the Kremlin this year, then the inability to use a U.S. bank card will. And the card sanctions work the other way, also. If you have a card issued by VTB Group, Sovcombank, Novikombank, Promsvyazbank, or Otkritie, it will not work outside Russia.
And you will not be able to use Apple Pay or Google Pay.
Reuters reports that “U.S. payment card firms Visa Inc (V.N) and Mastercard Inc. have blocked multiple Russian financial institutions from their network, complying with government sanctions imposed over Moscow’s invasion of Ukraine. According to the Reuters note:
Visa said on Monday it was taking prompt action to ensure compliance with applicable sanctions, adding that it will donate $2 million for humanitarian aid. Mastercard also promised to contribute $2 million.
CBS News reported:
In a statement issued Monday, Mastercard said it has “blocked multiple financial institutions from the Mastercard payment network.” It added that it will continue to work with regulators to comply with requirements “as they evolve.”
The card blocks are part of a global effort in response to the Ukraine issue. The WSJ mentioned:
The U.S. and key allies said over the weekend that they would hinder Russia’s central bank from using its foreign reserves and exclude a number of Russian banks from the international Swift payment network, among other measures.
The card actions are part of a global effort, advancing the issue of blocking Russia from SWIFT, the global clearing network.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
