Visa (NYSE:V) and Mastercard (NYSE:MA) have blocked financial institutions from their networks in response to sanctions targeting Russia after its invasion of Ukraine.
Last week, Russia launched an unprecedented invasion of Ukraine, forcing the U.S. and governments around the world to impose a series of sanctions aimed at cutting off Moscow from the global financial system.
Last week, the U.S. placed a number of Russian individuals and financial institutions on a sanctions list called the Specially Designated Nationals list. It effectively blocks U.S. companies and people from doing business with any individual or entity on that list. Washington also sanctioned Russia’s central bank on Monday.
On Monday, Mastercard said it had “blocked multiple financial institutions” from its payment network, without naming companies or individuals. "We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve," the company added.
Visa has also blocked those on the sanctions list, saying Tuesday that it was “taking prompt action to ensure compliance with applicable sanctions, and are prepared to comply with additional sanctions that may be implemented.”
Visa and Mastercard also both pledged $2 million toward humanitarian relief funds for Ukraine.
Meanwhile, Ukraine’s Vice Prime Minister Mykhailo Fedorov called on major cryptocurrency exchanges to block the addresses of Russian users.
V shares opened Tuesday down $3.46, or 1.6%, to $212.66, while those for MA fell $6.40, or 1.8%, to $354.42.
