Insight Iraq

In-Depth News & Views

Iraq News

Armenian banks to ditch Russian cards over US sanctions

Yerevan – Armenian banks on Friday mentioned they would end processing transactions produced by Russian Mir payment cards because of to Western sanctions imposed on Moscow for its invasion of Ukraine.

In September 2022, the US Treasury Section threatened international financial institutions with secondary sanctions for servicing Mir cards, a Russian card payment technique.

The Treasury’s Office environment of Overseas Property Management reported in February that Russia has been working with the program to evade Western sanctions, which have targeted Moscow’s economical system.

The Union of Financial institutions of Armenia claimed the country’s industrial banks “will stop servicing Mir playing cards as of Saturday, mainly because of the possibility of secondary sanctions.”

An exception will be made for Mir cards issued by the Armenian subsidiary of Russia’s condition-managed VTB Lender, it extra.

Soon after the West slapped sweeping sanctions on Moscow, Armenian banking companies observed their gains triple because of to a remarkable enhance in cash flows from Russia. 

Countless numbers of Russians fled to Armenia amid a crackdown on dissent and fears of getting drafted for the war. Armenian businesses have also been re-exporting Western-created purchaser products to Russia.

Yerevan has been drifting from Moscow considering the fact that 2020, when it shed a war to Azerbaijan. Relations additional soured last calendar year when Baku took manage of the disputed Nagorno-Karabakh location in a lightning offensive.

Yerevan has complained that Moscow unsuccessful to safeguard it in the experience of a persistent stability risk from Azerbaijan.

Ditching the use of Mir cards is the hottest in a string of diplomatic rows among the two nations.

On Friday, a authorities official explained Armenia will block broadcasts of shows by Russian Television presenter Vladimir Solovyov — whom the US Condition Department has named “the most energetic Kremlin propagandist.”

Past month Primary Minister Nikol Pashinyan mentioned Armenia experienced suspended its participation in the Collective Stability Treaty Organisation (CSTO), a Moscow-led protection alliance of a number of ex-Soviet republics, and has been attempting to forge partnerships with Western international locations, largely France and the United States

The place has also formally joined the Intercontinental Felony Courtroom (ICC), even with warnings from Moscow, and is now obliged to arrest Russian President Vladimir Putin if he sets foot on Armenian territory below an ICC arrest warrant issued in March 2023.