Tech sanctions hit Russia

Sanctions impacting electronic payment systems have resulted in long lines for cash at ATMs in Russia. — AP

As the situation in Ukraine rages on, tech companies are ceasing to do business in Russia.

These sanctions, aimed at pressuring Russia to withdraw its military forces from Ukraine, have had an impact on the country and its citizens.

Banks blocked

VTB Bank, a Russian state-owned bank and the country’s second largest financial institution, and three other major banks in Russia have been subject to “full blocking sanctions”, the US government stated on Feb 24.

According to the announcement, Russia would be unable to access global markets, attract investment, or use the US dollar if any of its banks’ assets are linked to the US financial system.

Following the sanctions, Moscow’s department of public transport announced that users may experience issues using Apple Pay, Google Pay and Samsung Pay to purchase tickets.

A snapshot by Irish journalist Jason Corcoran of people “fumbling about for cash” at a metro station in Moscow on March 1 due to their ewallets no longer working has since gone viral.

Additionally, the Bank of Russia released a statement warning Russian citizens that cards from the impacted banks can no longer be used to make payments at online retailers or for services provided by countries that have imposed sanctions on Russia.

Cutting off the stream

On March 6, Netflix announced the suspension of its services in Russia.

This comes after the streaming service apparently declined to broadcast the country’s mandatory 20 free-to-air propaganda channels.

Netflix launched in Russia in 2016 but remains a very tiny player, with reports indicating that it has less than a million customers.

Also, no new consumers will be permitted to sign up, but the company did not provide any information on how existing accounts will be handled.

TikTok announced that it would suspend live streaming and new content uploads for Russian users after the Russian government passed a law criminalising the dissemination of false information concerning the Ukraine conflict.

The in-app messaging service will not be affected, it said, adding that it will look into the law’s implications.

Game over

Electronic Arts announced that the company is “standing in solidarity with the people of Ukraine”, suspending the sale of its game titles and content in Russia.

Belarus, a country that is aiding Russia in its invasion of Ukraine, will also be impacted, it added.

The company is collaborating with platform partners to withdraw its titles from the region and to halt the sale of new in-game content.

It also announced the removal of Russia from its Fifa 22 and NHL 22 video games.

CD Projekt Red, the developer of the infamous Cyberpunk 2077, has also announced a freeze on all sales in Russia and Belarus.

Meanwhile, console maker Nintendo has placed its estore in Russia in maintenance mode after the suspension of payment processing in Russia’s rouble currency by a third-party payment operator.

Sales stopped

According to an announcement from Apple, all product sales in Russia have been put on hold as of March 2.

Even though Apple’s Russian online store may still be accessible, products like iPhones and Macs are marked as unavailable and cannot be purchased.

Meanwhile, Samsung, a leading smartphone brand in Russia, has announced that it will be stopping product shipments to the country.

Intel, too, has joined the list of companies enforcing sanctions, announcing that it has suspended all shipments to both Russia and Belarus.

And due to payment system disruption, Google had to pause the sale of apps on its Google Play store. Users in Russia will not be able to purchase apps and games, pay for subscriptions or make in-app purchases.