LONDON (ShareCast) - (Sharecast News) - US-based payment card companies have cut off a number of Russian banks and financial institutions in response to sanctions imposed on the country by Washington.
Visa and Mastercard both confirmed late on Monday that they had blocked a number of Russian organisations from their payment networks, effectively rendering both cards and terminals linked to the sanctioned companies useless.

Both companies also pledged to donate $2m (£1.49m) to humanitarian aid efforts related to Russia's invasion of Ukraine, Reuters reported.

The US sanctions required both companies to block access to 'specially designated nationals', including the Central Bank of Russia and the country's second-largest lender, VTB.

Contactless payment systems operated by US technology giants Apple and Google have also been affected, with reports that some Moscow commuters were unable to use their phone to enter the Metro as early as Monday morning.

Pictures emerged over the weekend of Russians queuing at bank branches and ATMs seeking hard currency, amid concerns their bank cards or payment networks in general would stop working.

The Central Bank of Russia operates a self-contained card payment system called 'Mir', which was set up to combat sanctions imposed after Russia's annexation of Crimea in 2014.

As of October last year, there were more than 100 million Mir cards in circulation, as Russian banks have gradually transitioned from the US-based Visa and Mastercard systems to the platform.

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