In the latest of an ever-growing number of companies making the same decision, PayPal shut down its services in Russia. The move was a direct reaction to Russia’s unprovoked war with Ukraine.
Ukraine’s minister of digital transformation, Mykhailo Fedorov, posted a letter from PayPal on Saturday confirming the news. “PayPal supports the Ukrainian people and stands with the international community in condemning Russia’s violent military aggression in Ukraine,” the letter read.
A PayPal spokesperson told Reuters that it would support withdrawals in Russia “for a period of time, ensuring that account balances are dispersed in line with applicable laws and regulations.”
Countless companies and service providers have cut off Russia in response to the war, including tech giants like Microsoft, Apple, and Google. Cogent Communications, the country’s second-largest internet provider, shut down in Russia this weekend.
Between massive companies ditching the country and devastating sanctions from the international community, Russia is becoming increasingly isolated from the rest of the world.
PayPal is obviously a major financial service, and it’s not the only one to ditch Russia. Both Visa and Mastercard suspended operations in the country as well, along with American Express. “It’s now basically impossible to send money to any individual in Russia,” said Charles Delingpole, CEO of ComplyAdvantage, in an interview with CNBC covering the PayPal news.
It’s unclear, when, if ever, these major companies will return to Russia.