When Visa Inc. and Mastercard Inc. halted operations after the assault on Ukraine, PJSC Sberbank has stated it was considering distributing cards using UnionPay and the Russian system Mir.
With UnionPay functioning in 180 nations and territories, the move may enable Russians to make certain payments abroad. Visa and Mastercard have announced that beginning March 10, any transactions that began with their cards issued in Russia would no longer be valid outside of the country.
Cards authorized by domestic banks will keep functioning in Russia via the country’s payment system. However, Russia’s largest lender, Sberbank, stated that timetables would be announced later.
Responding to President Vladimir Putin’s attack on Ukraine, Visa and Mastercard have joined the group of foreign firms halting operations in Russia. The action separates Russia’s economy even further. According to the companies, cards issued outside of Russia will not operate at ATMs or businesses within the nation.
American Express also announced on Sunday that it is ceasing business in Russia and Belarus. According to American Express, the actions are “additional to prior precautions we have taken, which include stopping our partnerships with Russian banks hit by the US and international government sanctions,” according to American Express.
Alfa-Bank JSC, Russia’s biggest non-state lender, is already engaged in selling UnionPay cards.
The state-owned UnionPay processes the majority of card payments in China. UnionPay does not react to emails or phone calls quickly outside of typical business hours.
Central Bank
Tinkoff Bank stated that it is not presently distributing such cards but that it will begin doing so as soon as feasible. The Russian division of Raiffeisen Bank International AG stated that it was looking into the issue on its website.
A temporary reduction in the amount of data that commercial banks are required to provide has been implemented by the Bank of Russia to mitigate the risks posed by international bans. Beginning with February statements, banks will no longer be required to produce accounts made to national standards or make any further disclosures on their websites, according to a statement issued by the central bank.
Russia’s central bank recommended its residents utilize cash when traveling overseas. Mir cards can be used in different countries like:
- Turkey
- Vietnam
- Armenia
- Belarus
- Kazakhstan
- Kyrgyzstan
- Tajikistan
According to the company, their card can also be used in the breakaway republics of South Ossetia and Abkhazia.
What do you think about this transition? Share your thoughts in the comment section.
