The newest round of sanctions against Russia relating to the ever escalating conflict in Ukraine will not negatively affect Visa and MasterCard clients at Russian banks.
The payment card companies have announced that they will not be blocking access to debit and credit card services for clients within Russia, even if they are with banks that have recently been added to the roster of sanctioned Russian business.
“Today’s actions are specific to certain banks’ access to the U.S. capital market. They do not impact our business,” said Master Card in a statement released Wednesday (July 30), reports Reuters. Visa affirmed a similar sentiment-noting that until further notice operations in Russia will like carry on—“business as usual”
Added to sanctions jointly slapped on Russia by the U.S. and the E.U., VTB Bank, Bank of Moscow and Russian Agricultural Bank— will their access to new equity or debt financing cut pretty sharply as sanctions prohibit American or European institutions from negotiating such things with them. The sanctions, however still leave out Russia’s biggest bank, and the EU has left open some large loopholes for many of the affected lenders, reports The Wall Street Journal.
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