Hello,
Sanctions against Russia from the EU, US, and UK keep tightening. The 19th package came through in November, and the 20th is already on its way.
NSPK – Russia’s national payment card system – is now on the sanctions list, which means Russian bank cards are affected too. The penalties for violations are serious, including potential criminal liability.
Our goal at Mellow is to keep companies working with their teams without compliance headaches. That’s why we’re making these changes in January:
- Starting January 1 — withdrawals to cards from banks in Belarus will only work for banks on our approved list
- Starting January 1 — withdrawals to accounts of banks in Russia will only work for banks on our approved list
- Starting January 12 – Russian bank cards won’t work for withdrawals anymore
We’re not going to break the law or put you at risk. Instead, we’re helping companies keep working with their people in a way that’s safe and straightforward.
We’ve partnered with several organizations so you have other ways to get your money.
Pavel Shynkarenko
Founder & CEO of Mellow.io
What's Changing at Mellow
The changes work differently depending on whether you’re an individual entrepreneur (IE), self-employed, or an individual from Russia or Belarus. Here’s the breakdown foreach.
Not sure which you are?
Open your Mellow account → “Profile” → “Tax Status” to see what’s set in the system.
Self-Employed Individuals
Withdrawal Details
Individuals from Belarus
Bank Details
Individuals from Russia
Withdrawal changes – January 12
- Russian bank cards won’t work anymore since they all run through NSPK.
- You can still withdraw to approved bank accounts, but we’ll automatically withhold personal income tax.
Withdrawals with tax withholding – January 12
Starting January 12, you can withdraw to approved bank accounts in Russia. When you do, we’ll automatically withhold personal income tax – we have to, since Mellow is an international organization acting as your tax agent. Without doing this, we’d be putting you at risk.
Your tax rate depends on how much you make annually:
We’ll share more details about how tax withholding works in December.
Сentral Asia bank cards
We’re setting up an integration with a banks in Сentral Asia that can issue bank cards remotely. This takes time to set up — we’ll have details in December.
E-wallet in Russia – coming in January
We’re setting up an integration with an e-wallet that isn’t under EU, UK, or US sanctions. Russian residents will be able to open one and add it to Mellow for receiving money.
This takes time to set up – we’ll have details in December. You’ll get a separate email from us, and we’ll update this article.
Payment Options
Individual Entrepreneurs
Bank Options
How Sanctions Work and Why We’re Changing the Rules
Let’s walk through our operating model and explain how sanctions actually work.
Why We're Making These Changes
We’re updating our rules to stay compliant with the law and keep you protected.
Here’s the issue: any payment to a Russian bank card now falls under sanctions because they all run through the National Payment Card System (NSPK), which is sanctioned. Even Visa and Mastercard cards issued before 2022 – after those systems left Russia, NSPK took over processing for them too.
So we’re partnering with providers outside Russian infrastructure – like those in Tajikistan. You get your money to a payment method in that region, then move it wherever you need.
We guarantee: money from Mellow never touches Russian payment infrastructure. That’s how we keep you safe.
Why an Entity Outside the UK, US, and EU Won’t Shield You from Sanctions Liability
Sanctions are more complex than they appear. You can’t just relocate team operations to another region and escape European, US, or UK sanctions laws.
EU, UK, and US sanctions reach any company, transaction, or operation that has a meaningful connection to the US, EU, and UK.
This gets interpreted very broadly. Using national currency? That's a connection. Paying for national services? Also counts. Many factors come into play, and if you want the full details, check the actual documents: UK sanctions, US sanctions.
When EU, UK, or US residents knowingly let their subsidiaries or partners violate sanctions, those residents are held responsible.
Same goes for companies that structure their operations to use intermediaries for actions that would be prohibited in the EU, UK, or US.
Why Hiring Contractors Outside the UK, US, and EU Won’t Shield You Either
Here’s what the law requires: before any transaction, you need to verify your counterparties and the transaction itself (this is called due diligence) to make sure you’re not violating sanctions. Article 12 of Regulation No 833/2014 spells this out.
The European regulator lays out minimum verification steps: check transaction documentation, transaction basis, money flow structure, and delivery routes.
If an intermediary service breaks sanctions rules, you’re liable too – the law says you must verify all intermediaries before transacting.
The consequences: frozen accounts, fines based on turnover, canceled residency for European residents, sometimes even criminal charges.
And there’s another risk: if the intermediary operates and holds assets outside the EU/US/UK, regulators might find it easier to go after you than them.
When you work with us, you can trust we’re sanctions-compliant – we have to be. Mellow is a group of companies with our main office in the EU.
Why Cryptocurrency Isn’t an Option
- Some countries restrict or ban cryptocurrency. In Russia, for instance, individuals can’t legally accept crypto as payment for goods, work, or services.
- Using cryptocurrency to get around sanctions is treated as a sanctions violation.
We won’t violate sanctions or put you at legal risk.
We monitor cryptocurrency regulations and stay current with legislation. When the laws shift, we’ll turn on crypto access right away.
Can You Actually Work with Russian and Belarusian Residents if Your Company’s in the EU, US, or UK?
Yes – as long as the person isn’t sanctioned individually and you’re paying for services that aren’t specifically restricted.
Right now, no sanctions ban you from working with Russian and Belarusian residents just because they hold Russian or Belarusian citizenship or live there.
How Closely Do Regulators Watch Sanctions Compliance?
Pretty closely. Enforcement stories appear in the news regularly – here's one example.
You’ve probably noticed banks suddenly updating terms or blocking accounts overnight – that’s sanctions at work.
We won’t block access unless the law requires it. We built Mellow so companies can work with people worldwide safely, quickly, and easily. Our job is lowering your risk, not adding to it – especially in places with tricky banking systems and tangled regulations.
Q&A
Will Mellow become more expensive with these changes?
Can I still withdraw money from Mellow after January 1?
Is the conversion rate changing?
What happens to my documents?
What if I try adding a Russian card after January 1?
I create invoices and offers for clients. Can I keep doing that?
Will Russian cards be supported again in the future?
