As a result of Russia’s invasion of Ukraine, many firms and nations are putting pressure on the country. For example, PayPal CEO Dan Schulman stated in a statement on Saturday that the business “stands with the world community in denouncing Russia’s aggressive military intervention in Ukraine.”
“PayPal has been working closely with governments and partners to ensure that all applicable laws and sanctions are actively followed,” Schulman added. According to a PayPal spokeswoman, the business will temporarily process client withdrawals to ensure that account balances are distributed per applicable legislation.
PayPal’s domestic services in Russia were suspended in mid-2020, while cross-border transactions were still possible. It halted the establishment of new accounts earlier this week. In addition, Xoom, the company’s international money transfer service, has been suspended in Russia.
The West’s response to the invasion has included measures to isolate Russia from the international banking system to put economic pressure on it. Late last month, the United States and its allies decided to remove several Russian banks from the SWIFT secure messaging network, which financial institutions use to transmit and receive money transfer requests. In addition, Mastercard and Visa said that they would no longer handle transactions for Russian-sanctioned institutions in March.
As a result of the invasion, several IT businesses have ceased selling products and services in Russia, potentially making everything from iPhones to computer chips and video games more difficult to get in the nation. Apple, for example, has halted sales of its gadgets and has halted online transactions, including restricting Apple Pay.