American Express joins Visa and Mastercard in suspending operations in Russia over Ukraine war

American Express announced this Sunday that it is suspending its operations in Russiajoining the measure taken on Saturday by the Visa and Mastercard financial transaction platforms.

“In light of the continuing and unwarranted attack by Russia against the people of Ukraine, American Express is suspending all operations in Russia”the company said in a statement.

As in the case of the other two companies, Mater card specifies that its cards “issued around the world will no longer work in shops or ATMs in Russiawhile locally issued cards in Russia by Russian banks will no longer work outside the country in the global network of American Express”.

This means that cards issued outside of Russia cannot be used to make purchases or withdraw money within the countrybut citizens with cards issued in the country will be able to buy within Russiaalthough your transactions will be made through other networks.

“All transactions initiated with cards Visa issued in Russia will no longer work outside the country and Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation”, he wrote yesterday Visa in a statement in which he also justified his action for the war in Ukraine.

“We are forced to act following Russia’s unprovoked invasion of Ukraine and the unacceptable events we have witnessed”said the president and CEO of VisaAl Kelly, quoted in note.

The decision of the three platforms comes a week after United States and the European Union (EU), along with other Western partners, agreed to remove “certain” Russian banks from the international system Swiftwhich accentuates Russia’s disconnection from the international financial system.

The transaction system Swift It is the basis of the global financial system and is used by 11,000 banks in 200 countries or territories to make transfers.

The three companies already announced last week the blockade of Russian financial institutions sanctioned by the US authorities. in retaliation for the Russian invasion.

Today, the rating agency Moody’s has downgraded the note of the sovereign solvency of the Government of Russiawhich was already framed within the “junk bond”, from “B3″ to “Ca”, due to the expectation that the capital controls of the Central Bank of Russia will restrict cross-border payments, including the debt service of government bonds. government.

“The downgrade to ‘Ca’ is driven by major concerns about Russia’s willingness and ability to pay its debt obligations,” the agency said in a statement, indicating that the country’s outlook remains negative due “to the significant risks to macroeconomic stability posed by the imposition of harsh and coordinated sanctions following the Russian invasion of Ukraine.”

The American Bank JPMorgan Chase assured on Friday that it calculates that the Russian economy will contract 7% in 2022 due to the war in Ukraine, double what was anticipated a few days ago, as a consequence of the sanctions imposed by the West against Moscow and due to the exodus of international companies in the country.

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