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dalton99a

(90,649 posts)
10. No weakening of sanctions. Russians already know about the workarounds
Tue Mar 8, 2022, 09:44 AM
Mar 2022
https://www.wsj.com/articles/russian-banks-turn-to-china-to-sidestep-cutoff-from-payments-systems-11646578489

Russian Banks Turn to China to Sidestep Cutoff From Payments Systems
Sberbank, Alfa Bank and Tinkoff Bank said they are working on the possibility of issuing cards powered by China’s UnionPay
By Patricia Kowsmann and Alexander Osipovich
Updated March 6, 2022 2:18 pm ET

Russian banks that have been cut off from global payments networks are turning to China’s state-owned UnionPay system as the country tries to sidestep boycotts by Western businesses for its invasion of Ukraine.

Visa Inc. and Mastercard Inc. said they are suspending their Russian operations, making it difficult for Russians to buy goods from abroad. The moves by the two companies go beyond sanctions issued against many Russian banks.

Sberbank, Russia’s largest bank by assets, Alfa Bank and Tinkoff Bank said Sunday they were working on the possibility of issuing cards powered by China’s UnionPay. Another Russian lender, Gazprombank, said customers can do cross-border transactions by getting cards that use UnionPay or Japan’s JCB system.

UnionPay is ubiquitous in China and expanded globally as Chinese traveled abroad, often to buy luxury goods. UnionPay cards are accepted in stores in 180 countries and regions, and online in over 200 countries and regions, according to the company’s website.

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