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Russian bank working to issue China's UnionPay, domestic MIR cards after Visa, Mastercard exit

ANI | Updated: Mar 07, 2022 14:40 IST

Moscow [Russia], March 7 (ANI): Following the suspension of operations in Russia by payment giants Visa and Mastercard, Russia's state-owned Sberbank announced on Sunday that it is working on issuing payment cards using China's UnionPay and Russia's domestic Mir payment systems, Russian media reported.
Sberbank also said in the statement that the suspension of Visa and Mastercard services in Russia will not affect the use of cards issued by Russia's Sberbank within the country, although foreign transactions will be limited, further stating that the date that the new payment card will be issued will be intimidated in due course.
"International payment systems have decided to limit their work in Russia in the coming days. This decision will not affect the operation of Sberbank Visa and MasterCard cards within the country," the statement read, quoted Sputnik News Agency.
Credit card and Payment giants Mastercard and Visa announced on Saturday that they were suspending operations in Russia and that their cards issued by Russian banks will no longer work outside the country.
"Effective immediately, Visa will work with its clients and partners within Russia to cease all Visa transactions over the coming days. Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation," Visa said in a statement.
The severe action followed Russia's invasion of Ukraine on February 24, after recognising the breakaway Donetsk and Luhansk regions as independent republics.
The US and its European allies have introduced sanctions targeting several major Russian banks and high-rank Russian officials, including President Vladimir Putin, besides ousting Russia from the SWIFT financial system.
A number of countries, including Japan, South Korea and Australia, have also slapped financial sanctions and travel bans against Russia. They are mulling new targeted penalties to freeze assets and restrict travel against Russia's most influential political and military officials. (ANI)