Visa and MasterCard now process all Russian transactions through a state-run system designed to prevent the U.S. credit card companies from suspending service, a Central Bank official said Thursday.
"We transferred all transactions done with MasterCard cards in April, and literally last night we completed a full transition for all banks using Visa," Central Bank deputy head Olga Skorobogatova was quoted as saying by the Interfax news agency.
Visa and MasterCard, both of which are incorporated in the United States, together process about 90 percent of payment transactions in Russia.
Work on Russia's national payment system was launched last year after MasterCard and Visa suspended service to two banks with alleged links to President Vladimir Putin that had been sanctioned by the U.S. following Russia's annexation of Crimea from Ukraine.
While the sanctions on the two banks affected very few ordinary Russians, it woke the Kremlin up to the possibility of more widespread denials of service. Legislation was then passed obliging international payment systems — most prominently, Visa and MasterCard — to process payments through a national payment system that would allow Russians' credit cards to continue functioning even if foreign payment systems switched off access.
On Saturday the national payment card system announced that it had selected a brand name and image for its first bank cards, to be released later this year. The card, which will feature an image of the world and cartoon-like wings, will be branded "Mir," a word that means both "the world" and "peace" in Russian.
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.