PayPal Holdings Inc, a payments provider, shut down its services in Russia early on Saturday, citing “present circumstances,” joining a slew of other financial and digital firms that have halted operations in the aftermath of Ukraine’s incursion.
“Under the current circumstances, we are suspending PayPal services in Russia,” according to a statement by President and Chief Executive Dan Schulman. He added that the company “stands with the international community in condemning Russia’s violent military aggression in Ukraine.”
PayPal will support withdrawals for a period of time, ensuring that account balances are disbursed in accordance with applicable rules and regulations according to a company representative. PayPal, which previously only allowed Russian users to make cross-border transactions, stopped accepting new members in the nation on Wednesday.
Officials from the Ukrainian administration had been pleading with PayPal to leave Russia and assist them with fundraising.
Following sanctions imposed by the US and other nations in reaction to Russia’s invasion of Ukraine, PayPal has already blacklisted some users and some of the country’s largest institutions. The manoeuvre has been dubbed a “special operation” by Russia.
Alexander Bornyakov, Ukraine’s deputy minister for digital development, said in an interview with Reuters on Wednesday that PayPal should take more drastic measures and shut down completely in Russia.
Due to government restrictions, Visa Inc (V.N), Mastercard Inc (MAXP.N), and American Express Co (AXP.N), as well as mobile payment providers Apple Pay and Google Pay, have blacklisted several Russian banking institutions. It was not immediately clear whether any new Russian accounts had been blocked.
Foreign investors who own tens of billions of dollars in Russian stocks and bonds have been barred from withdrawing as a result of the sanctions. Bornyakov and his colleagues in Ukraine have also requested PayPal’s assistance in seeking funds.
However, according to Reuters, Ukraine’s emailed request to PayPal was aimed at gathering donations for the Ukrainian Armed Forces. PayPal bans are associated with the sale of ammunition and firearms.
According to the spokesperson, PayPal supports users in Ukraine through cross-border transactions and its Xoom service for international money transfers.
