Multiple Russian banks are warning their customers that their UnionPay-branded debit cards may stop working abroad due to new sanctions imposed by the US and UK.
The warnings came a day after the two countries implemented broad new sanctions that authorize the rejection of transactions from a list of Russian financial institutions.
UnionPay is a Chinese payment system that some Russian banks had been using, with more turning to it after MasterCard and Visa withdrew from the country following the invasion a year ago. The US Treasury Department stated that the sanctions will come into full effect by May 25.
According to a report by Russian business news channel RBC, Zenit Bank, which is included in the sanctioned list, sent a mass email to its customers warning that “operations on your UnionPay card abroad may be suspended in the near future” and recommended that customers withdraw necessary funds promptly.
Similar warnings were also issued by other banks, including MTS Bank, Primorye Banks, Bank Saint Petersburg, and Uralsib Bank. In total, five out of twelve Russian UnionPay card issuers are included in the new list of sanctions.
US Treasury Secretary Janet Yellen stated that the sanctions are intended to cut off money for Russia’s military in response to the ongoing war. Yellen said, “Our sanctions have had both short-term and long-term impact, seen acutely in Russia’s struggle to replenish its weapons and in its isolated economy.”
»Debit cards might stop working in Russia due to Western sanctions«
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