https://www.rt.com/business/445862-central-bank-russia-visa-mastercard/
Russia ready to switch off Visa & Mastercard ahead of tougher US sanctions
Published time: 7 Dec, 2018 14:07 Edited time: 7 Dec, 2018 15:21
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© Sputnik / Alexandr Kryazhev
The regulator has recommended that Russian financial institutions take the necessary preventive steps in case their partner-banks are forced to stop providing connection to services by the world’s two most used payment systems – Visa and Mastercard, reports Russian business daily Vedomosti.
The list of Russia’s banking majors that are currently working as an intermediary include Credit Union “Payment Center,” one of Russia's largest private lenders Uralsib, Rosbank that operates as a Russian subsidiary of the international financial group Societe Generale, Russia’s second biggest bank VTB and privately owned Promsvyazbank.
Also on rt.com Russian banks ready to switch off SWIFT – official
VTB and Promsvyazbank have already been included in the Countering America’s Adversaries Through Sanctions Act (CAATSA), approved by US Congress last summer. The legislation allows Washington to introduce penalties against enterprises and individuals that are seen as hostile towards the US or loyal to regimes that are hostile to the US.
The Central Bank of Russia advises that Russian banks should look for an alternative sponsor that will be able substitute a current provider of Visa and MasterCard services, seal a maintenance service contract and test an opportunity of integrating.
Also on rt.com Crimea ditches Visa & MasterCard in favor of Russian national payment system
In response to sanctions Russia has developed its own national payment system. The Mir payment system was introduced in 2015 after clients of several Russian banks were temporarily unable to use Visa and Mastercard due to US sanctions. Customers found bank issued credit cards linked to Visa and Mastercard systems no longer worked. The country issued 37 million Mir cards as of June 2018.
Earlier this month, Sberbank CEO German Gref said one or two of the Russian lenders are vulnerable to potential US sanctions. However, Gref stressed that none of the banking majors would be sanctioned.
For more stories on economy & finance visit RT's business section
https://www.rt.com/business/418665-russia-banks-ready-shut-swift/
Russian banks ready to switch off SWIFT – official
Published time: 13 Feb, 2018 13:28
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© Maxim Shemetov © Reuters
“Certainly, it is unpleasant, as it will prove a stumbling block for companies and banks, and will slow down work. It will be inevitable to deploy some aged technologies for information transfer and calculations. However, the companies are technically and psychologically ready for the shutdown as this threat was repeatedly voiced,” Dvorkovich said, as quoted by TASS.
He added that the measure may have a negative impact on corporations working in the US and Europe.
“In general, disconnecting Russia from SWIFT would be a crazy step on the part of our Western partners. It is obvious that for the companies which work in Europe and the US it would be harmful. And this applies not only to the shutdown of the service,” he said.
The potential disconnection of Russia from SWIFT has been under discussion since 2014, when the EU and the US introduced the first round of international penalties against Moscow over alleged involvement in the Ukraine crisis and the reunification with Crimea.
At the time, the European Parliament called for strong actions against Russia, including expelling the country from money transfer services. However, the Society for Worldwide Interbank Financial Telecommunication regarded the recommendations as violating rights and damaging for businesses.
In 2017, Russia’s Central Bank Governor Elvira Nabiullina told President Vladimir Putin that the banking sector had been provided with all the necessary conditions for operating lenders and payment systems in case of disconnection from SWIFT. According to the regulator, 90 percent of ATMs in Russia were ready to accept the Mir payment system, a domestic version of Visa and MasterCard.
The Mir payment system was introduced in 2015 after clients of several Russian banks (SMP Bank, InvestCapitalBank, Russia Bank and Sobinbank) were unable to use Visa and MasterCard due to the sanctions.
Russia ready to switch off Visa & Mastercard ahead of tougher US sanctions
Published time: 7 Dec, 2018 14:07 Edited time: 7 Dec, 2018 15:21
Get short URL
© Sputnik / Alexandr Kryazhev
- 1237
The regulator has recommended that Russian financial institutions take the necessary preventive steps in case their partner-banks are forced to stop providing connection to services by the world’s two most used payment systems – Visa and Mastercard, reports Russian business daily Vedomosti.
The list of Russia’s banking majors that are currently working as an intermediary include Credit Union “Payment Center,” one of Russia's largest private lenders Uralsib, Rosbank that operates as a Russian subsidiary of the international financial group Societe Generale, Russia’s second biggest bank VTB and privately owned Promsvyazbank.
Also on rt.com Russian banks ready to switch off SWIFT – official
VTB and Promsvyazbank have already been included in the Countering America’s Adversaries Through Sanctions Act (CAATSA), approved by US Congress last summer. The legislation allows Washington to introduce penalties against enterprises and individuals that are seen as hostile towards the US or loyal to regimes that are hostile to the US.
The Central Bank of Russia advises that Russian banks should look for an alternative sponsor that will be able substitute a current provider of Visa and MasterCard services, seal a maintenance service contract and test an opportunity of integrating.
Also on rt.com Crimea ditches Visa & MasterCard in favor of Russian national payment system
In response to sanctions Russia has developed its own national payment system. The Mir payment system was introduced in 2015 after clients of several Russian banks were temporarily unable to use Visa and Mastercard due to US sanctions. Customers found bank issued credit cards linked to Visa and Mastercard systems no longer worked. The country issued 37 million Mir cards as of June 2018.
Earlier this month, Sberbank CEO German Gref said one or two of the Russian lenders are vulnerable to potential US sanctions. However, Gref stressed that none of the banking majors would be sanctioned.
For more stories on economy & finance visit RT's business section
https://www.rt.com/business/418665-russia-banks-ready-shut-swift/
Russian banks ready to switch off SWIFT – official
Published time: 13 Feb, 2018 13:28
Get short URL
© Maxim Shemetov © Reuters
- 6
“Certainly, it is unpleasant, as it will prove a stumbling block for companies and banks, and will slow down work. It will be inevitable to deploy some aged technologies for information transfer and calculations. However, the companies are technically and psychologically ready for the shutdown as this threat was repeatedly voiced,” Dvorkovich said, as quoted by TASS.
He added that the measure may have a negative impact on corporations working in the US and Europe.
“In general, disconnecting Russia from SWIFT would be a crazy step on the part of our Western partners. It is obvious that for the companies which work in Europe and the US it would be harmful. And this applies not only to the shutdown of the service,” he said.
The potential disconnection of Russia from SWIFT has been under discussion since 2014, when the EU and the US introduced the first round of international penalties against Moscow over alleged involvement in the Ukraine crisis and the reunification with Crimea.
At the time, the European Parliament called for strong actions against Russia, including expelling the country from money transfer services. However, the Society for Worldwide Interbank Financial Telecommunication regarded the recommendations as violating rights and damaging for businesses.
In 2017, Russia’s Central Bank Governor Elvira Nabiullina told President Vladimir Putin that the banking sector had been provided with all the necessary conditions for operating lenders and payment systems in case of disconnection from SWIFT. According to the regulator, 90 percent of ATMs in Russia were ready to accept the Mir payment system, a domestic version of Visa and MasterCard.
The Mir payment system was introduced in 2015 after clients of several Russian banks (SMP Bank, InvestCapitalBank, Russia Bank and Sobinbank) were unable to use Visa and MasterCard due to the sanctions.
