PayPal suspends services in Russia as Putin’s Big Cancellation continues

PayPal has become the latest high-profile firm to suspend operations in Russia as Vladimir Putin’s ‘great undo’ continues following the invasion of Ukraine.

The payments giant cited “current circumstances” as the reason for its withdrawal, joining dozens of other financial and technology companies in rushing out of the country.

“Under the current circumstances, we are suspending PayPal services in Russia,” PayPal Chairman and CEO Dan Schulman said in a statement.

He added that the society “stands with the international community in condemning Russia’s violent military aggression in Ukraine.”

In total, more than £100billion in trade links have already been severed with the increasingly isolated nation, with no sign that the ever-widening embargo is about to lose momentum.

High-profile Russians, including Putin himself and his entourage, have faced personal financial sanctions across much of Europe and the United States.

But ordinary citizens are now also feeling the pinch, with multinational companies abandoning the increasingly isolated national and the Russian ruble crashing to record lows against the dollar.

PayPal has become the latest high-profile firm to suspend operations in Russia as Vladimir Putin’s ‘great undo’ continues following the invasion of Ukraine. [File image]

In total, more than £100billion in trade links have already been severed with the increasingly isolated nation, with no sign that the ever-widening embargo is set to lose momentum

In total, more than £100billion in trade links have already been severed with the increasingly isolated nation, with no sign that the ever-widening embargo is set to lose momentum

PayPal Chairman and CEO Dan Schulman (above) said the company

PayPal Chairman and CEO Dan Schulman (above) said the company ‘stands with the international community in condemning Russia’s violent military aggression in Ukraine’.

A company spokesperson said PayPal would support withdrawals “for a period of time, ensuring that account balances are distributed in accordance with applicable laws and regulations.”

PayPal, which only allowed cross-border transactions by users in Russia, on Wednesday stopped accepting new users in the country.

Ukrainian government officials had asked PayPal to leave Russia and help them raise funds.

PayPal said on Friday that “since the start of the invasion, PayPal has helped raise more than £113 million ($150 million) for charities supporting response efforts in Ukraine, one of the most more important than we have seen in such a short time”.

It comes as big tech companies YouTube and Facebook have banned Russian state media RT and Sputnik from sharing their content across Europe.

High-profile Russians, including Vladimir Putin himself and his entourage, have faced personal financial sanctions across much of Europe and the United States.

High-profile Russians, including Vladimir Putin himself and his entourage, have faced personal financial sanctions across much of Europe and the United States.

YouTube and Facebook have banned Russian state-owned media RT and Sputnik channels across Europe (pictured on Tuesday)

YouTube and Facebook have banned Russian state-owned media RT and Sputnik channels across Europe (pictured on Tuesday)

The suspension of PayPal in Russia also applies to its Xoom money transfer tool. Rivals Wise and Remitly have suspended some services in Russia.

On Tuesday, YouTube and Facebook banned Russian state media RT and Sputnik channels across Europe.

It is the latest in a wide-ranging crackdown on Moscow propaganda finally imposed this week after Russia’s invasion of Ukraine last Thursday.

Swedish home goods giant IKEA said it would become one of the latest companies to announce a suspension of its operations in Russia amid the invasion of Ukraine on Thursday.

Footage emerging from IKEA warehouses across the country shows a sea of ​​shoppers desperately trying to grab products before the shutters slam shut.

Footage emerging from IKEA warehouses in Russia shows a sea of ​​shoppers desperately trying to grab products before the shutters are closed indefinitely (taken from St Petersburg pictured)

Footage emerging from IKEA warehouses in Russia shows a sea of ​​shoppers desperately trying to grab products before the shutters are closed indefinitely (taken from St Petersburg pictured)

“The war has already had a huge human impact,” IKEA said in a statement. “It also causes serious disruptions to the supply chain and trading conditions.

“For all these reasons, IKEA has decided to temporarily suspend its operations in Russia.”

“The devastating war in Ukraine is a human tragedy, and our deepest empathy and concern goes out to the millions affected,” the company said.

“These decisions have a direct impact on 15,000 IKEA co-workers, and the business groups will provide job and income stability and support to them and their families in the region.”

IKEA arrived in Russia in 2000, nine years after the collapse of the Soviet Union, and has become one of the largest Western employers in the country.

British and international companies have continued to withdraw their products from Russia as the world protests against the country’s unprovoked invasion of Ukraine, with the country already losing £100billion in trade.

Meanwhile, fashion brands BooHoo, H&M and Burberry, and music streaming site Spotify are among other big brands to cut ties with the nation.

The backlash has also affected sport, with feuds breaking out in football, athletics and Formula 1.

A growing number of British companies have decided to stop buying Russian exports to the UK – and have stopped trading in Russia – despite threats from the Kremlin that “economic wars often become real wars”.

Russians looking to forget about the crisis in cinema will also be disappointed, as Warner Bros released “The Batman”, Sony released “Morbius” and Disney its children’s animation “Turning Red”.

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