Western Union has announced it will cease its operations in Russia due to new sanctions from the United States. The company is selling their FX and Merchant Solutions business for a net loss of $400 million USD, but still leaves behind one billion USD in goodwill which may be used by Western Union under certain circumstances.
Western Union has suspended its operations in Russia as the country’s economy continues to deteriorate. The company joins a mass exodus from the country that includes major banks and other multinational companies. Read more in detail here: western union suspends in russia.
Western Union has become the latest global payments juggernaut to halt operations in Belarus and Russia. The corporation, like many others, has decided to take action in response to what it calls the “unprovoked and illegitimate invasion of Ukraine.”
The money transfer behemoth follows Visa, PayPal, American Express, and MasterCard in suspending all services in Russia.
Western Union stated in an official statement that it had previously assessed the effect on partners, staff, and customers before deciding on the suspension, citing the devastating consequence of Russia’s widespread and violent attack on Ukraine.
Meanwhile, the US corporation has said that it wishes to help Ukrainian consumers, especially the millions who have been forcefully evicted from their homes and relocated, by donating to various humanitarian assistance activities and providing fee-free money transfer services.
JP Morgan Chase and Goldman Sachs, two Wall Street firms, also mentioned their exit from Russia. Both of these companies have said that their activities in the country are currently being phased out. As the rest of the world puts harsh penalties on Russia as it continues its attack on Ukraine, more companies are expected to flee.
Western Union has joined the mass exodus of companies leaving Russia. The company announced that it would be closing its office in Russia and moving to Kiev, Ukraine. Reference: western union russia locations.
