Visa, Mastercard Freeze Customer Cards at Russian Bank

2014/03/21

MOSCOW, March 21 (RIA Novosti) – US-based Visa Inc. and Mastercard Inc. have stopped processing payments by cardholders of a Russian bank added to a list of targeted economic sanctions by the United States on Thursday, the bank said on its website.


The news was the first sign that a series of Western sanctions against Russia over the ongoing crisis in Crimea could impact ordinary Russians, as earlier moves had been restricted to targeting high-level officials.


“The management of Rossiya Bank understands the difficulties experienced by clients in this situation, and assures them that everything possible is being done to help,” the Rossiya Bank said in its statement.


The bank added that customers blocked from using their cards for point-of-sale transactions could still withdraw cash from the bank’s ATMs without difficulties, as well as those owned by partner banks.


Russian President Vladimir Putin warned earlier this month that sanctions against Russia threatened to cause mutual damage in the modern, integrated global economy.


The US and EU announced asset freezes and travel bans targeting a number of Russian officials close to Putin on Monday, following a referendum in Crimea that saw voters overwhelmingly support reunification with Russia after 60 years as part of Ukraine.


Those lists were expanded – including the addition of Rossiya Bank to the US list – following the ratification of the reunification treaty by Russia’s parliament Thursday.


Leaders in Crimea refused to recognize the legitimacy of the government in Kiev that came to power amid often violent protests last month and sought reunification with Russia.


The crisis over the fate of the Black Sea peninsula has sparked the greatest geopolitical showdown between Russia and the West since the end of the Cold War.



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