On 13 March 2026, the European Commission published a new set of Frequently Asked Questions (“FAQs”, accessible here) clarifying the scope and application of EU sanctions restrictions on the provision of payment services under Article 5b(2) of Council Regulation (EU) No 833/2014, as amended (the “EU Russia Sanctions”). Article 5b(2) of the EU Russia Sanctions prohibits the provision of certain payment services to Russian nationals and natural and legal persons, entities and bodies in Russia
The FAQs address a number of practical questions raised by payment service providers (“PSPs”), fintechs and other financial institutions, including the treatment of existing payment instruments, the allocation of compliance responsibilities and the distinction between prohibited and permitted payment services. Below, we highlight several key clarifications from the Commission’s guidance and their practical implications.
Scope of the prohibition
The EU Commission confirms that Article 5b(2) of the EU Russia sanctions only targets the provision of certain categories of payment services, namely:
- crypto asset services as defined under Regulation (EU) 2023/1114 (MiCAR);
- the issuing of payment instruments, the acquiring of payment transactions and the provision of payment initiation services as defined under the Directive (EU) 2015/2366 (Payment Services Directive 2); and
- the issuing of electronic money as defined under Directive 2009/110/EC (Electronic Money Directive).
A key takeaway from the FAQs is that the scope of the restriction must be determined by direct reference to the MiCAR, the Payment Services Directive 2 and the Electronic Money Directive, requiring a granular, service by service analysis. This approach reinforces that for payment service providers evaluating their compliance obligations they must undertake a mapping exercise against the underlying regulated services being provided. In practice, this approach also requires careful consideration of national implementation and positions in each EU Member State on the Payment Services Directive 2 and the Electronic Money Directive, as there are differences of interpretation across jurisdictions. Additionally, the FAQs explain that access to online or mobile banking services, direct bank transfers and cash withdrawals are not in scope of the prohibition.
The FAQs make clear that the prohibition applies when those services are provided to (i) Russian nationals, (ii) natural persons residing in Russia, or (iii) legal persons, entities or bodies established in Russia. Non-Russian entities legally established in the EU or third countries but owned or controlled by Russian persons are not in scope. The FAQs do emphasize the need to read this in conjunction with circumvention provisions, particularly Article 12 of the EU Russia Sanctions, which prohibits participation knowingly and intentionally in activities the object or effect of which is to circumvent prohibitions in the Regulation. Also, the European Commission provides practical clarification that holders of a long stay Type D visa are considered legally resident (and thus exempted from the prohibition under Article 5b(3) of the EU Russia Sanctions, provided the holder has completed national registration requirements).
Clarification on existing accounts and contracts of Payment Service Providers
The EU Commission confirms that PSPs are not required to close existing accounts or terminate contracts with affected customers solely as a result of Article 5b(2) of the EU Russia Sanctions. At the same time, the FAQs make clear that:
- the prohibitions apply to both new and existing contractual relationships (even if the contract itself pre‑dates Article 5b(2) of the EU Russia Sanctions); and
- PSPs must immediately discontinue any prohibited services once a customer falls within scope, including in relation to existing contracts.
Distinction between card use and card issuance
The FAQs draw a clear line between:
- the continued use of existing payment instruments (which is generally permitted); and
- the issuing, renewal or replacement of payment instruments, which is prohibited for in‑scope Russian persons and entities.
This means that existing debit or credit cards do not need to be cancelled or frozen. The renewal or re-issuing of these cards is however treated as a new issuance and is therefore prohibited.
Practical takeaways
The new FAQs provide welcome operational clarity for PSPs and other financial institutions. Key takeaways include:
- the prohibition is narrowly scoped, but strictly applied;
- existing customer relationships may continue, subject to service‑level restrictions; and
- issuance‑related activities carry heightened sanctions risk.
While the FAQs are not legally binding, they are likely to be relied upon by national competent authorities and should be carefully assessed and monitored.
