PayPal Holdings Inc (PYPL), a payments provider, shut down its services in Russia early on Saturday, citing present conditions, joining a slew of other financial and digital firms that have halted operations in the aftermath of Ukraine’s invasion.
PayPal will support withdrawals for a length of time, according to a company representative, ensuring that account balances are distributed in accordance with applicable rules and regulations.
PayPal, which previously only allowed Russian users to make cross-border payments, stopped accepting new members in the nation on Wednesday.
Officials from the Ukrainian administration had been pleading with PayPal to leave Russia and assist them with fundraising.
Since the outbreak of the invasion, PayPal has helped generate over $150 million for organizations supporting response operations in Ukraine, PayPal announced on Friday.
The suspension of PayPal in Russia also affects its money transfer service Xoom. Wise, a competitor, had previously discontinued several services in Russia.
Due to the current situation, PayPal stopped accepting new subscribers in Russia on Wednesday.
Following the U.S. and other foreign sanctions, PayPal, which only enables cross-border transactions by Russian customers, had already blacklisted some users and several of the country’s largest institutions.
Alexander Bornyakov, Ukraine’s deputy minister for digital development, called on PayPal to take more drastic measures, including shutting down its operations in Russia entirely.
Multiple Russian financial institutions have been blocked as a result of government sanctions, including Visa Inc (V.N.), Mastercard Inc, and others, as well as digital payment services Apple Pay and Google Pay.
The fighting in Ukraine masked an uptick in employment creation in the United States, causing Wall Street to close lower on Friday.
The S&P 500 banks index lost 3.35 percent, increasing its weekly loss to over 9%. The Ukraine crisis helped energy equities, as crude prices and other commodities rose in response to Russian sanctions.
Highly valued growth equities have taken the brunt of the latest selloff. The Nasdaq Composite Index was down 1.66 percent, while the Dow Jones Industrial Average was down 0.53 percent.
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