Another embargo: Russia's banking system is collapsing!

According to the statement made by Visa and Mastercard, both banking systems will stop working in Russia.

Russia is playing all trump cards in order not to be under the sanctions of the UK, USA and other European countries. But according to the latest reports, the Russians are facing quite a difficult time in the banking system. Moreover, he announced that the most used services in the world will also be included in the embargo.

Visa and Mastercard suspend their services in Russia

In a statement made by Visa on its website, it was said that the company will stop all banking transactions for Russia in the coming days. It was stated that for this purpose, work continues with business partners in Russia.

Similarly, Mastercard said in its press release that it is suspending its services in Russia indefinitely, and that this was not an immediate decision. When we look at the details of this statement from both sides, we see that it does not only affect overseas shopping.

At the same time, it was informed that credit and debit cards issued by Visa and Mastercard partner banks to customers outside the country will no longer work in Russia. However, Russian citizens will be able to use their cards from Russian banks in their own country. However, they will not be able to benefit from the advantages provided by Visa and Mastercard.

Making a statement on the subject, Visa CEO Al Kelly said:

We regret the impact this will have on our valued colleagues and the customers, partners, merchants and cardholders we serve in Russia. This war poses an ongoing threat to peace and stability. We need to respond in line with our values.

These two statements, which will deeply affect the banking system, came right after the call of the President of Ukraine Volodymyr Zelensky to both companies by meeting with the US deputies. Congressman Brad Sherman, on the other hand, tweeted after his meeting with Zelensky:

I am pleased to hear that Mastercard and Visa will immediately effectively suspend all their operations in Russia.

At the beginning of last week, Visa and Mastercard said that they banned some Russian banks from their banking systems as a result of the financial sanctions imposed by the USA on Russia. After that, he made the following statement:

This global decision stems from our recent action to block multiple financial institutions from the Mastercard payment network as required by regulators.

Last month, the United States and the European Union said that Russian banks were removed from the SWIFT system used for global finance. Payment systems such as Apple Pay and Google Pay, as well as PayPal as of yesterday, announced that they were shuttered in Russia.