Gazprombank has reported difficulties in using UnionPay cards abroad and advised its customers to withdraw cash to pay for purchases. This information is contained in the bank's SMS distribution.
The message specifies that problems have been observed since November 21 and may temporarily limit the use of cards outside of Russia.
These events coincided with the introduction of a new package of anti-Russian sanctions by the US Department of the Treasury, including dozens of individuals and legal entities. For the first time, Gazprombank, which had not previously been subject to such measures, was subject to restrictions.
In response, the bank stated that the sanctions would not affect its operations. Gazprombank continues to serve customers as usual, including conducting operations in financial markets. The bank stressed that all cards, including cards of foreign payment systems, remain fully functional in Russia, both in stores and at ATMs.
US Sanctions
The United States has imposed new sanctions against more than 30 banks and financial institutions, including Gazprombank and its foreign subsidiaries in Switzerland, Cyprus, Luxembourg, Hong Kong and South Africa. Primsotsbank, a less popular bank that issues UnionPay cards, was also included in the list. These measures are part of the largest sanctions package targeting 100 financial institutions with Russian participation.
The consequences for UnionPay cardholders remain unclear. Earlier, Kommersant warned of possible problems with foreign counterparties that could affect the performance of cards abroad.
Gazprombank, whose UnionPay cards are popular among Russians traveling abroad, may also face disconnection from SWIFT. This measure is more aimed at complicating work with friendly importers than at the daily operations of customers. Prior to this, sanctions against Gazprombank were avoided due to its role in processing payments for Russian energy resources.
The US Treasury Department's sanctions focus on cross-border payments, including the use of financial messages. This is likely to push Russian authorities and businesses to seek workaround solutions to continue operations. Top managers of the Central Bank associated with payment infrastructure were also included in the SDN List sanctions list.
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