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PayPal Stops Servicing Crimean Clients

© AP Photo / ERIC PIERMONTPayPal has notified customers in Crimea that it will stop providing services to residents of the peninsula
PayPal has notified customers in Crimea that it will stop providing services to residents of the peninsula - Sputnik International
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PayPal has notified customers in Crimea that it will stop providing services to residents of the peninsula.

Local residents dressed as Father Frost, an equivalent of Santa Claus, and his granddaughter Snegurochka (Snow-Maiden), walk with servicemen as they visit check points of the Ukrainian army and self-defence units to congratulate the military with the coming of a New Year, near Lysychansk, Luhansk region, January 2, 2015. - Sputnik International
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SIMFEROPOL, January 23 (Sputnik) US-based digital payment system PayPal has notified customers in Crimea that it will stop providing services to residents of the peninsula.

“It was a very difficult decision for us, but unfortunately, we are currently unable to provide services to clients in Crimea,” PayPal said in a statement Friday.

According to Crimean PayPal users, they first began receiving notices of service termination on Thursday. One user who received such a notice told RIA Novosti that he had been using PayPal to make payments on eBay. As he had no credit on his account, PayPal’s decision would not cause any problems, and he would now start shopping on Chinese websites instead.

EBay Inc. announced Tuesday it was going to spin off its PayPal payments business to create two independent publicly traded companies in 2015. - Sputnik International
EBay Announces Plans to Split Off PayPal in 2015

Another user stated that he is yet to receive a service termination notice, though a small sum of rubles had been automatically returned from his PayPal account to his Russian bank account.

Earlier in the week, US company Apple Inc. informed authorized dealers that it would halt sales of Apple products in Crimea by February 1, a date outlined in an executive order issued by US President Barack Obama in December. Visa and MasterCard have also suspended their services in Crimea.

The US president’s December order bans the US export of goods, services and technology to Crimea and follows several rounds of western sanctions against Russia. The Crimean peninsula rejoined Russia in March, 2014 after more than 96 percent of local voters supported the move in a referendum, which to date has not been recognized by Ukraine and the West.

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