This is pretty much what I would expect.
I don't know if this is still the case, but I do know of a major Russian retailer of miniature models that unfortunately had to resort to a foreign based Paypal account because Paypal would not allow sending funds to Russia...: Paypal, at that time, allowed sending funds OUT of Russia, but not INTO Russia... They were perfectly honest folks, but it does underline there is a serious issue...
Other than the Soviet Block exception, I don't buy for a minute that there is any more issues with International sales than with US sales (except occasional slowness), knowing people who have done thousands of transactions. I wish more US sellers would realize how parochial it looks when they specify US sales only: There is no other country with its sellers doing this... Treat others like you would wish to be treated...
Gaston
P.S. One major US retailer, Knifeworks, did a similar thing to me recently, refusing to use my CC payment, because with their foreign customers they need two successful Paypal or Western Union transactions before using a foreigner's CC... No real obvious warning of this either, and my money was tied up for at least one week for a dud transaction... I've never seen this from any other non-knife US retailer, it seems a peculiarity to knives that sellers are so cautious (a reflection of the market mid-price knives is?). They have lost my business forever: Treat foreigners like you would like to be treated yourself, it's that simple...