The Lithuanian fintech company Paysera has halted transfers to and from Russia. The decision was made in solidarity with Ukraine and to reduce risks from the Russian market.
The company will no longer process transactions in Russian rubles, close its Russian clients’ accounts and restrict money transfers to and from Russian and Belarusian banks, it has said in a press release. It has also called on other financial institutions to follow suit.
The restrictions on financial transactions will mostly affect Russian residents. Furthermore, transfers to all Russian or Belarusian banks have been terminated for all customers if the recipient is a Russian or Belarusian company. Companies that are registered outside Russia but the main shareholders of which are Russian citizens will not be able to remain Paysera’s clients.
“The EU sanctions imposed on Russian banks on February 22 are a compromise, intended to be approved by all EU member states. We stand in solidarity with the Ukrainians and will no longer process nearly all transactions related to Russia,” Gintautas Mezetis, CEO of Paysera, is quoted in the press release.
“While we understand that we are not a giant in the financial market, we do want to send the message that we can all have an impact through the choices we make. While we refuse to transfer money, someone else might refuse to insure, produce, advise, invest or provide transport,” he said.
Founded in 2004, Paysera is one of the biggest non-bank payment operators in the Baltic States. The company said its customers in 20 European countries transferred 6.5 billion euros via the Paysera app and online banking.
According to Mezetis, restrictions on Russia-related operations will also reduce operational risk for the company.
Paysera’s restrictions on money transactions linked to Russia:
- Russian citizens will no longer be able to use Paysera accounts (the restriction does not apply to Russian citizens who have a residence permit in another country acceptable to the company). Existing accounts will be closed following the contractual notice period.
- Russian and Belarusian companies will not be able to use Paysera accounts. All existing accounts will be closed.
- Paysera clients will not be able to transfer money in all currencies to Russian and Belarusian banks if the recipient is a legal entity. Nor will they be able to receive transfers from them (transfers between individuals who are not sanctioned will not be restricted for the time being but will be subject to more frequent and thorough checks on their origin and destination).
- Currency exchange to Russian rubles (RUB) will no longer be available for Paysera clients. However, it will be possible to exchange (sell) existing rubles.
- Money transfers to and from WebMoney (a Russia-owned electronic payment system) have already been suspended.
- No new accounts will be opened for legal clients the main shareholders of which do not have a residence permit in a country accepted by the company. (LRT/Business World Magazine)
