© yIgor Grussak/picture alliance via Getty Images
The move could allow Russians to make some payments overseas, with UnionPay operating in 180 countries and regions. Visa and Mastercard said that any transactions initiated with their cards issued in Russia will no longer work outside the country from March 10.
Cards issued by domestic banks will continue to work in Russia using its payment system. Russia's biggest lender, Sberbank, said it would announce timescales later.
Visa and Mastercard have joined the list of international companies suspending activities in Russia in response to President Vladimir Putin's invasion of Ukraine. The move further isolates Russia's economy. Cards issued outside of Russia won't work at ATMs or merchants inside the country, the firms said.
Comment: As the Kremlin has already stated, ultimately, it's not possible to isolate Russia. Those that go along with the West's embargo who will struggle to find alternative sources of desperately needed commodities, such as oil, wheat, and gas - bearing in mind Europe relies on Russia for upwards of 50% of its gas - meanwhile Russia can easily find other customers for its highly sought after goods.
Russia's largest non-state lender, Alfa-Bank JSC, is already working on offering cards with UnionPay.
State-owned UnionPay is the provider of most card payments in China. UnionPay did not immediately respond to emails and phone calls outside of normal office hours.
Central Bank
Tinkoff Bank said it currently isn't issuing such cards, but will start to do so as it's soon as possible. Raiffeisen Bank International AG's Russian business said on its website that it was considering the problem.
The Bank of Russia is also temporarily reducing the amount of information commercial banks are required to publish in an effort to limit the risks from international sanctions. Starting with statements for February, banks will no longer have to release accounts prepared to national standards or make any additional disclosures on their websites, the central bank said in a statement.
The central bank of Russia advised its citizens to use cash abroad. It said Mir cards could also be used in Turkey, Vietnam, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and the breakaway territories of South Ossetia and Abkhazia.
Comment: As with the commodities, it's the Western institutions that will be losing out on these transactions - both in terms of profit and the information they can glean from them - and, once the alternative is up and running, any country threatened with US sanctions will have the option to switch over from the compromised and corrupt providers in the West:
- Russia says West's sanctions are 'economic banditry' and it will respond
- US drafts contingency plan for government-in-exile and guerrilla war in Ukraine
And check out SOTT radio's: NewsReal: Crossing the Rubicon