UnionPay limits operations with sanctioned Russian banks

2 September, 12:41 PM
UnionPay has limited work with sanctioned banks in the Russian Federation (Photo:Фото: coindesk.com)

UnionPay has limited work with sanctioned banks in the Russian Federation (Photo:Фото: coindesk.com)

UnionPay, a Chinese large payment system, has limited its operations with Russian acquiring banks that were put on sanctions lists, Russia’s RBC news agency reported on Sept. 2, with reference to two sources in banks and the payment market.

In particular, UnionPay has introduced a ban on servicing UnionPay cards issued by sanctioned foreign banks in their POS terminals.

“Indeed, the Chinese payment system UnionPay, at its own initiative, has limited partnerships with sanctioned banks both in terms of acquiring and issuing,” the source said.

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“In particular, the acceptance of foreign UnionPay cards was disabled on verbal notice alone.”

According to the sources, UnionPay took its decision because of the risk that it might become liable to secondary sanctions.

Another source of the news agency told the cards had actually been blocked “in April-May, after the imposition of sanctions.”

Earlier, in March, the Visa and Mastercard payment systems limited the operation of cards issued in Russia abroad. At the same time, the cards still work in Russia.

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