Visa has suspended access for certain clients as it works to comply with sanctions imposed after Russia’s invasion of Ukraine.
The payments giant disclosed that about 4% of its total net revenue in fiscal year 2021 came from Russia, including both domestic and cross-border activity, according to a regulatory filing Wednesday. That’s equivalent to the 4% exposure Mastercard disclosed earlier this week.
“Visa is in the process of complying with all applicable global sanctions,” the company said in the filing. “As part of that compliance, we have suspended access to Visa for certain clients. It is difficult to reasonably estimate the full potential financial impact of this situation on Visa at this time.”
Companies across the globe are working to navigate the sanctions leveled at Russia. Citigroup told investors Wednesday that just 0.3% of its asset base is exposed to Russia. In its filing, Visa said that Ukraine exposure accounted for about 1% of its revenue.
“While it is difficult, in our opinion, to determine what, if any, portion of this revenue will be disrupted by the invasion, we believe that Visa’s disclosure may help investors estimate potential downside from the conflict,” Daniel Perlin, an analyst with RBC Capital Markets, said in a note to investors.
