PayPal closes services in Russia as it condemns military offensive in Ukraine

US payments firm will support withdrawals 'for a period of time, ensuring that account balances are dispersed in line with applicable laws and regulations'

PayPal said its suspension of services in Russia applies to its money transfer tool Xoom. AFP
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US payments company PayPal Holdings shut down its services in Russia on Saturday, blaming "the current circumstances" and joining many financial and tech companies in suspending operations there after the invasion of Ukraine.

"Under the current circumstances, we are suspending PayPal services in Russia," president and chief executive Dan Schulman said. He added that the company "stands with the international community in condemning Russia's violent military aggression in Ukraine".

A company representative said PayPal will support withdrawals "for a period of time, ensuring that account balances are dispersed in line with applicable laws and regulations".

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

Ukrainian government officials had been calling on PayPal to quit Russia and help them with fundraising.

PayPal said on Friday that "since the beginning of the invasion, PayPal has helped to raise over $150 million for charities supporting response efforts in Ukraine, one of the largest efforts we've seen in such a short period of time".

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

Updated: March 07, 2022, 5:08 AM