Effective immediately, PayPal has discontinued its payment and other financial services throughout Russia, citing the ongoing conflict in Ukraine as the reason for this move.
In a decisive if carefully worded letter to Ukrainian Deputy Prime Minister Mykhailo Federov, PayPal’s Chief Executive Officer Dan Schulman was crystal clear about the rationale for this pullout. “PayPal supports the Ukrainian people and stands with the international community in condemning Russia’s violent military aggression in Ukraine,” Schulman wrote.
As this suspension takes effect, PayPal will “work to process customer withdraws for period of time, ensuring that account balances are dispersed in line with applicable laws and regulations,” according to a company spokesman. The company had already suspended its services for domestic payments within Russia in 2020, and a few days before had begun to block Russian nationals from opening new PayPal accounts.
This suspension is the latest among a series of vocal withdrawals from Russia by other major multinationals, including both Visa and Mastercard, as well as a ban on Russian banks from the international SWIFT program. The effect of the exclusion of Russia from traditional and digital financial tools has already had a significant negative impact on the country’s economy.