As nations across the globe continue to sanction Russia in condemnation of their invasion of Ukraine, companies have now joined the movement to exclude the Russian government, and sometimes Russians, from their list of clients.

Some of these companies have decided to ban them as a recommendation to the international sanction provisions from The Office of Foreign Assets Control (OFAC).

Others have taken this decision as a show of solidarity with the Ukrainian people. However, not all fintech companies are placing blanket boycotts on Russian citizens.

The most notable holdouts are Binance and Kraken, who cite the argument that banning “innocent Russians” goes against the philosophy behind cryptocurrencies.

So, let’s go through the reactions of fintech companies to the Russian invasion and explore how they affect the socio-economic climate in Russia and the rest of the world.

VISA

According to Statista, VISA owns 12 per cent of all credit payment cards in the world (335 million credit cards), accounting for about 50 per cent of the overall market shares.

The company reacted to the Russian invasion by halting all its operations within Russia and banning Russian VISA cardholders from processing transactions.

According to VISA’s official statement, the company is “taking prompt action to ensure compliance with applicable sanctions and is prepared to comply with additional sanctions that may be implemented.”

The VISA Foundation has also donated a US$2 million grant to the US Fund for UNICEF to provide the Ukrainian people with humanitarian aid.

Mastercard

Mastercard has maintained the same ironclad stance as VISA on the Russian invasion. The credit card company has reportedly forfeited about four per cent of potential revenue by excluding Russians from its services.

Mastercard CEO Michael Miebach released a statement saying that the company has ceased operations in Russia, as well as banned certain Russian banks from the payment network.

Miebach also affirms that the company has sent a US$2 million humanitarian fund to the Red Cross, Save the Children, and employee assistance.

Amex

American Express has also joined the ranks of Visa and Mastercard in suspending all operations in Russia and Belarus.

According to the memo from American Express CEO Stephen J. Squeri, the cards issued on the Russian territory will no longer work in Russia or outside the country.

As part of Amex’s “Do What is Right” code, the company has pledged US$1 million to humanitarian organisations to provide relief to people in Ukraine affected by this horrendous war.

PayPal

Despite being under no obligations to react, PayPal has taken the initiative to join other world-renowned payment services in halting all operations in Russia until further notice.

Dan Schulman, PayPal CEO, released a statement saying:

“PayPal supports the Ukrainian people and stands with the international community in condemning Russia’s violent military aggression in Ukraine. The tragedy taking place in Ukraine is devastating for all of us, wherever we are in the world.”

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He goes on to add that despite banning Russians from using PayPal’s services, the company will still provide support for Russian citizens within its workforce.

Payoneer

Payoneer’s reaction to the Russian aggression was to stop all issuance of cards to customers with postal or residential addresses within the Russian Federation.

According to the company’s updated FAQs, Russian citizens with Payoneer cards issued outside Russia can still conduct transactions without restrictions.

Upwork

In an open letter to freelancers, Upwork CEO Hayden Brown reiterated the company’s mission to help improve people’s lives, highlighting how “Vladimir Putin’s war on Ukraine” hampers that goal.

As a result, with over four per cent of registered freelancers from Russia and Belarus, Upwork has suspended operations and has shut down support for new business generation in both countries.

To this end, the changes will take full effect on May 1, 2022, leaving freelancers and clients in Russia and Belarus unable to create new accounts, initiate new contracts, and appear in searches.

The platform also donated US$1 million to Direct Relief International to support Ukrainian citizens caught up in the war.

Revolut

As a company with a Ukrainian co-founder Vlad Yatsenko, Revolut has provided unwavering support for the Ukrainians suffering from the war.

The current CEO Nikolay Storonsky, born in Russia to a Ukrainian father, released an open letter, categorically condemning the war, saying that “this war is wrong and totally abhorrent” and that “…not one more person should die in this needless conflict.”

In a statement titled “The War on Ukraine: Our Response,” Revolut has affirmed its dedication to uphold and impose sanctions placed on Russia.

As part of its support to Ukraine, Revolut has removed transfer fees for every transaction going into the country. The company has also pledged to match every donation made to the Red Cross Ukraine appeal.

Paysera

Paysera has released a comprehensive list of financial restrictions on Russia and its allies involved in the Ukrainian invasion.

Here is a list of the actions taken to impose these sanctions:

• Russian citizens will no longer be able to use Paysera (this restriction does not apply to Russian citizens with residency or work permits in other supported countries).
• All current accounts belonging to Russians will be closed.
• Russian and Belarusian companies are banned from using their Paysera accounts.
• All current business accounts belonging to Russian and Belarusian entities will be closed.
• Transactions to Russian and Belarusian banks between private individuals will continue but must go through rigorous verification procedures.
• Paysera will roll back all money transfers from Russian and Belarusian banks received on Monday (February 23 and later).
• Paysera users can no longer exchange to Russian Roubles (RUB).

This list is only one part of the extensive regulation changes for Russian citizens and banks.

Western Union

On March 10, 2022, Western Union issued a press release announcing that all the company’s operations in Russia and Belarus will be suspended with immediate effect.

For the people of Ukraine, Western Union has created a donation portal to address the humanitarian and refugee crisis, according to Elizabeth Executive Director of the Western Union Foundation.

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The money transfer company has pledged US$500,000 to provide humanitarian aid to the Ukrainian people. To donate to the Western Union Foundation, visit their official website.

Wise

Before the 2022 Russian-Ukrainian war, Wise (formerly TransferWiser) had already placed a US$200 limit for Russian account owners.

With the current swathe of sanctions, the remittance and payments company has doubled down on its restriction for individuals and businesses within the Russian Federation and its (illegally) occupied territories.

Find a detailed breakdown of the restrictions according to the company’s Help Centre below:

Here you’ll find answers to the most common questions about Russian Rouble (RUB) transfers.

• You can only send RUB to private bank accounts or cards in Russia.
• You cannot send RUB to government agencies in Russia.
• You cannot send RUB to Crimea or Sevastopol.
• You cannot send USD or EUR to accounts in Russia.

These conditions may change as the conflict develops.

Remitly

Remitly is a P2P service that allows immigrants to send money across borders. Since the company’s core demographics (immigrants) are closely aligned to the plight of Ukrainian refugees, it is no surprise that they’ve also banned Russia.

Remitly, through a spokesperson, has communicated its dedication to upholding this ban according to the EU and US sanctions.

Zepz

Zepz (formerly WorldRemit), has released a list of countries on its banned list, including Russia and Belarus.

The company also released an updated list of transaction conditions, showing that Russia is on the blocklist until further notice.

The bottom line

The Russia-Ukrainian war has plunged the entire financial sector into a new reality. We are witnessing an unprecedented situation.

Numerous companies that aren’t obliged by law or sanctions, take the initiative to leave the Russian market. These decisions cost each of them a significant part of revenue, yet they demonstrate the willingness to pay this price in order to help stop the atrocious war.

United in an effort to protect democracy, they have put human values above their economic interests.

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