The National Payment Card System (NSPK), which operates "Mir" cards, has been subjected to the latest US sanctions. The same package of sanctions from the US Treasury Department included the Russian banks "Avangard", "International Financial Club", Rostfinance, Chelyndbank, Modulbank, Databank, Marine Bank, Bystrobank, and SPB Bank.
Representatives of NSPK stated that cardholders in Russia will not have any problems with their operation. The FPS and cards issued by Russian banks within the international payment systems Visa, MasterCard, and UnionPay will also continue to work.
Is it possible to pay with Russian "Mir" or UnionPay cards abroad?
Currently, payment outside of Russia using UnionPay is available in 156 countries, and with "Mir" cards in 10 countries. However, there are nuances in the operation of Russian "Mir" cards abroad and co-badged cards.
For example, Gazprombank and Rosselkhozbank, which are the last in Russia to issue UnionPay, explained to "RG" that there are no restrictions on the Russian side. However, the acquiring bank abroad may not accept payment from a Russian bank.
Some banks and retail outlets abroad may restrict the acceptance of "Mir" cards and MIR-UnionPay co-badged cards, as well as UnionPay cards issued by Russian banks that have been included in the sanctions list. This rule is not new; foreign banks and retail outlets independently determine their readiness to work with sanctioned companies, weighing the risk of falling under secondary sanctions.
In a conversation with "RG", Sergunov advised owners of "Mir" and UnionPay cards who are outside of Russia to withdraw a sufficient amount of cash for living expenses in advance. Or to ensure other access to their funds. In other words, try to transfer them to other cards.
Some banks are issuing the same warning to their clients. In particular, Rosselkhozbank.
[...] The operation of the "Mir" payment system services and transactions through the Faster Payments System (FPS) are carried out as usual and are fully available to users. At the same time, it is worth remembering that foreign banks can independently decide whether to accept "Mir" cards in their infrastructure. Therefore, we recommend withdrawing cash if you are abroad.
And they warn Russians for a reason. For example, fearing sanctions, Freedom Finance Bank in Kazakhstan has already banned money transfers from and to "Mir" cards. Clients can transfer or receive funds in this bank for now via SWIFT transfers, transfers from foreign Visa and Mastercard cards, and transfers by phone number via "Tsifra Bank". Other banks in partner countries of the EAEU and banks in other countries may follow this example.
Is there a way out of this situation?
Besides the obvious solution of lifting sanctions, there is an option to solve problems with payment transfers by creating joint banks with other countries. The creation of a Turkish-Russian bank is already being actively discussed, as is the possible connection of Turkey to the FPS.
As Raisa Donskaya, head of the international trade and foreign economic activity company "Sikurs Team", noted in a comment for "RG", it is most likely that Moscow and Ankara will agree in this direction by spring. Since Russia is not only a trading partner of Turkey, but also helps the development of its tourism. In 2023, Russia became the leader in the number of foreign tourists in Turkey, with 6 million Russians visiting it.
Turkey may support the opening of branches of Russian banks in its country. But such "subsidiaries" should only work with rubles or Turkish liras so that the West cannot track transfers.
Meanwhile, since the beginning of January this year, Turkish exporters have faced refusals from banks to accept money transfers from Russia for payment of goods. And since the beginning of February, Turkish banks have tightened their policies towards Russian clients. Some banks are closing accounts for businessmen, and it has become more difficult for Russian individuals to open an account.
Russians who currently live or do business in Uzbekistan have also faced a tightening of service in the banking sector this year. It became known that the Uzbek Ipak Yuli Bank began requiring clients from Russia to provide a personal identification number of an individual (PINFL) so that they could continue to fully use their cards. At the same time, the rule on the need to provide PINFL to banks has been in effect in the country since February 9, 2023, but Russian cardholders have only now encountered the requirements to provide it. Without PINFL, cards can only be used to make payments; it will not be possible to receive money on them or make a transfer from them.
