Report: Chinese credit card processor rebuffs Russian banks

By AP News

Share:

BEIJING (AP) — China’s credit card processor has refused to work with banks in Russia for fear of being targeted by sanctions over its war on Ukraine, cutting off a possible alternative after Visa and Mastercard stopped serving them, according to the Russian news outlet RBC.

BEIJING (AP) — China’s credit card processor has refused to work with banks in Russia for fear of being targeted by sanctions over its war on Ukraine, cutting off a possible alternative after Visa and Mastercard stopped serving them, according to the Russian news outlet RBC.

UnionPay’s decision affects Sberbank, Russia’s biggest commercial bank, and smaller institutions, RBC reported Wednesday. It cited five unidentified sources in large Russian banks.

Mastercard and Visa suspended operations in Russia after the United States and other governments imposed trade and financial sanctions on President Vladimir Putin’s government for its attack on Ukraine.

Sberbank and another institution, Tinkoff Bank, announced they were looking at switching to UnionPay, which is operated by Chinese state-owned banks. UnionPay is one of the biggest global payments processors but does almost all its business in China.

American officials have warned that governments or companies that try to undermine sanctions will face consequences. RBC said UnionPay wanted to avoid such “secondary sanctions.”

Chinese President Xi Jinping's government has called Russia its “most important strategic partner” and criticized sanctions on Moscow. But Chinese companies and banks appear to be complying with trade and financial restrictions.

Other banks cited by RBC include Alfa Bank, VTB, Otkrytie and Promsvyazbank.

Share:

In this article:

Industries:
Financials

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!

VTM Exclusive Reports

Crypto Corner

Learn your NFTs from your BTCs