Armenian banks to cease servicing Russia’s mir cards

Armenian banks will cease services for Russia’s Mir payment cards beginning on March 30, causing concerns for Russian nationals in the country

In a move set to disrupt financial transactions for Russian nationals in Armenia, local banks will halt services for Russia’s Mir payment cards effective March 30, as announced by Russia’s National Card Payment System (NSPK) on Tuesday.

The decision comes amid escalating tensions between Russia and Western financial giants, with Mir cards gaining prominence following the suspension of Visa and Mastercard operations in Russia due to the conflict in Ukraine. The cessation of services by Armenian banks raises concerns for Russians residing or traveling in the country who rely on Mir cards for their financial transactions.

While Russia has sought alliances with nations that have refrained from imposing sanctions, the acceptance of Mir cards remains limited globally. Several countries have even backtracked on facilitating Mir transactions, underscoring the challenges faced by Moscow in its attempts to circumvent Western sanctions.

The situation escalated in February when the United States sanctioned the NSPK, the entity responsible for operating Mir cards. This move directly impacted Armenia’s domestic payments system, ArCa, which had been in collaboration with NSPK.

As per NSPK’s announcement, members of the ArCa network will discontinue servicing Mir cards from March 30, posing a potential inconvenience for Russian nationals. However, cards issued by Russian bank VTB, which boasts 53 branches across Armenia, will continue to function uninterrupted.

Armenia’s central bank clarified that commercial banks retain the autonomy to decide on their partnerships for payment services, reflecting the delicate balancing act between serving Russian customers and mitigating the risk of secondary sanctions.

A source within the financial market, speaking to Reuters, highlighted the strategic considerations guiding Armenian banks, who must weigh the prospect of losing Russian clientele against the looming threat of additional sanctions.

Source: Reuters