PayPal, a global payments provider that provides financial technology services, said it will block wallet accounts located in Russia starting March 18. The news comes after a growing number of financial services firms in Russia temporarily shut down services or blocked product features.
While some private-sector business decisions may be of little significance to the overall war situation, economic sanctions that cut off payment and funding channels will ultimately affect the financial services that reach ordinary people and dramatically affect the Russian economy.
Last week, PayPal CEO Dan Schulman issued a statement regarding the Russian armed forces’ invasion of Ukraine. “PayPal stands by the people of Ukraine and stands with the international community in condemning Russia’s unprovoked violent military aggression in Ukraine,” Schulman said.
— Mykhailo Fedorov (@FedorovMykhailo) March 12, 2022
The tragedy in Ukraine is devastating for all of us, no matter where we are in the world. I want to share with you that we have suspended PayPal services in Russia. We have worked with governments and partners Working closely together, we are actively complying with all applicable laws and sanctions, and fulfilling our responsibilities to our customers around the world. We are also doing everything we can to support our employees in Russia during this extremely difficult time.”
He added that PayPal customers have cumulatively donated more than $3 million to support charities and refugee aid in Ukraine. Another report states that PayPal has helped other companies raise more than $150 million for charities helping Ukraine.