MOSCOW: Russia issued its first electronic payment cards Tuesday, aiming to boost its financial independence and compete with international payment systems such as Visa Inc. and MasterCard Inc.
The launch of the Russian bank cards—branded Mir, which means “peace” or “world” in Russian—represents a belated response to Western sanctions that interrupted the processing of some Russian payment transactions in March 2014. Russia has for years considered creating its own local payment system, but the concept gained little traction until the Kremlin endorsed the idea following the annexation of Crimea last year.
The peninsula, home to two million people, has faced problems with its banking system since it was annexed from Ukraine. Only a few banks operate there, and cafes and stores in the resort area haven’t been able to accept international bank cards since Visa and MasterCard services were halted.
The Bank of Russia and the National Payment Card System presented the freshly minted cards on Tuesday, saying that the move will bolster Russia’s financial sovereignty. Bank Rossiya, SMP Bank and RNKB Bank—all of which are on the Western sanctions list—will be among the first Russian lenders to issue the plastic cards. Russia’s largest lenders, Sberbank and VTB, also joined the national payment system. “The aim of NPCS was to ensure issuance and operation of cards in Crimea,” said Olga Skorobogatova, the Russian central bank’s deputy governor.
