Online payment giant PayPal has suspended its services in Russia, citing the political tension following Russia’s invasion of Ukraine. This adds to several firms that have retreated from the country due to the war.
“Under the current circumstances, we are suspending PayPal services in Russia,” Chief Executive Officer of PayPal, Dan Schulman, stated while addressing the Ukraine government.
The suspension is also coming as Russia faces a series of sanctions from the Western government for its invasion of Ukraine and continued attacks on the country.
Microsoft And Apple Also Consider Retreat From Russia
PayPal’s suspension letter was posted by Mykhailo Fedorov, Ukraine’s minister of digital information. He has been pressuring international businesses to offer support to Ukraine. Other businesses like Microsoft and Apple are considering a similar move as the Russian war against Ukraine rages on.
A PayPal spokesperson also confirmed that the firm was retreating from Russia, saying that PayPal will continue to process customer withdrawals in the meantime to ensure that its suspension process follows the applicable laws and regulations.
More Companies Leave Russia As War In Ukraine Continues
This is not the first time PayPal has suspended its services in Russia. In 2021, the payment processor stopped its domestic services in the country, but this time it is pulling out from all business activities in the country.
This includes the payment and receipts functions as well as the international transfer feature via PayPal’s Xoom remittances platform. The company also stated that the suspension began earlier this week after Russians were prevented from opening new accounts with PayPal.
Those will be the latest company that has pulled discontinued its services in Russia as the series of bans on the country become more serious. Russia’s invasion of Ukraine and its refusal to cease-fire may still lead to more sanctions.
Already, the global interbank messaging network SWIFT had earlier banned several Russian banks from using its services. Mastercard and Visa also said they are considering blocking Russian financial institutions from their networks. The series of bans on Russian financial and banking firms have made it almost impossible for people to send funds to anyone in Russia. The ban has also affected other Russian-linked companies operating in other jurisdictions.