Russia moved to prevent the U.S. payment card firms MasterCard and Visa quitting Russia by pledging to reduce the size of the deposit required for them to operate in the country.
New rules imposed on foreign card companies following Western sanctions over Ukraine required the payment operators to deposit collateral with the central bank worth two days of their average processing volume in Russia, in eight quarterly installments.
Both companies considered quitting Russia after President Vladimir Putin signed the rules into law in early May, but said they would stay after officials showed a willingness to relax the requirements.
On Wednesday, the lower house of parliament, the State Duma, began discussing amendments to soften the law. First Deputy Prime Minister Igor Shuvalov said the deposit payment would be "significantly reduced".
"We expect that the actions we are taking will calm the situation with Visa and MasterCard," he said. "We will do everything to make sure they keep their activities here."
Morgan Stanley analysts estimated in a report in May that Visa and MasterCard would be required to post about $1.9 billion and $1 billion in total collateral, respectively, once the rules take effect.
The analysts noted that Russia accounts for less than 4 percent of both companies' respective global revenues.
Visa and MasterCard both declined comment.
See also:
MasterCard Looking for Russian Partner to Avoid Billion-Dollar Security Payment
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
