Mastercard Statement on Suspension of Russian Operations

Rhea-AI Summary

Mastercard has announced the suspension of its network services in Russia due to the ongoing conflict in Ukraine and regulatory requirements. This follows the blocking of several Russian financial institutions from Mastercard's payment network. As a result, cards issued by Russian banks will no longer be supported, and Mastercard cards from outside Russia will not function at local merchants or ATMs. The company prioritizes the safety of its employees and will continue to provide them with pay and benefits during this transition.

Positive

• Commitment to employee safety and continued pay during service suspension.
• Long-term operation in Russia (over 25 years) demonstrates business stability.

Negative

• Suspension of network services may lead to loss of Russian market revenue.
• Blocking of Russian financial institutions could impact overall transaction volumes.

PURCHASE, N.Y.--(BUSINESS WIRE)-- For more than a week, the world has watched the shocking and devastating events resulting from the Russian invasion of Ukraine. Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine.

We have previously shared the steps we have taken in response to these events, with the well-being and safety of our employees being our first and foremost priority. And as we have navigated and complied with our regulatory commitments, we have been in constant dialogue with our customers, partners and governments. We’ve received perspectives from our employees, in addition to people across the industry, consumers and our shareholders. We have also considered what would be most important to support the continued availability of services, if possible, to impacted people in the region.

It’s with all of this in mind – and noting the unprecedented nature of the current conflict and the uncertain economic environment – we have decided to suspend our network services in Russia.

This decision flows from our recent action to block multiple financial institutions from the Mastercard payment network, as required by regulators globally.

With this action, cards issued by Russian banks will no longer be supported by the Mastercard network. And, any Mastercard issued outside of the country will not work at Russian merchants or ATMs.

We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years. We have nearly 200 colleagues there who make this company so critical to many stakeholders. As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide pay and benefits. When it is appropriate, and if it is permissible under the law, we will use their passion and creativity to work to restore operations.

In the meantime, our teams across the region and around the world will continue to enable and advance our global business, supporting our customers in other geographies where we currently do business. As they do, we will remain vigilant to ensure the safety and security of the global payments ecosystem and our network. Our Cyber & Intelligence teams will continue to work with governments and partners around the world to ensure that stability, integrity and resiliency of our systems continue to guide our operations and response to potential cyber-attacks.

These have been and will continue to be very difficult days – most of all for our employees and their families in Ukraine; for our colleagues with relatives and friends in the region; for our colleagues in Russia; and for the rest of us who are watching from afar.

As we take this step, we join with so many others in hoping for and committing to a more positive, productive and peaceful future for us all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220305005035/en/

Seth Eisen

914-249-3153

seth.eisen@mastercard.com

Source: Mastercard Investor Relations

FAQ

Why did Mastercard suspend services in Russia?

Mastercard suspended services in Russia due to the ongoing conflict in Ukraine and regulatory requirements.

What will happen to Mastercard cards issued in Russia?

Cards issued by Russian banks will no longer be supported by the Mastercard network.

How long has Mastercard operated in Russia?

Mastercard has operated in Russia for over 25 years.

What measures is Mastercard taking for its employees in Russia?

Mastercard is prioritizing the safety of its employees and will continue to provide them with pay and benefits.

What regulatory actions did Mastercard take regarding Russian banks?

Mastercard has blocked multiple Russian financial institutions from its payment network, as required by global regulators.