Russia is turning to microchip makers in China to circumvent Western sanctions, which have boosted demand for Mir Cards linked to the Mir payment system, an official said today.
Western sanctions on Russia over its invasion of Ukraine have cut Moscow off from the global financial system and frozen nearly half of its $ 640 billion gold and foreign exchange reserves.
Oleg Tisakov, a member of the National Card Payment System (NSPK), said Russia was facing a shortage of microchips as Asian companies cut production due to the Covid-19 pandemic, while European suppliers cut ties with Moscow due to of sanctions.
“We are looking for new microchip suppliers and have found two in China. The certification process is ongoing,” Tisakov said, without elaborating.
Some of the largest Russian banks no longer have access to the international banking system SWIFT, while Visa and MasterCard have stopped cooperating with Moscow. The connection of the Russian payment system Mir with Apple Pay was interrupted last month.
NSPK issued more than 2 million Mir cards by the end of 2021 until March, according to estimates by Reuters. In total, the number of these cards exceeds 116 million. All major Russian banks have reported an increase in demand for domestic cards. Some banks issue cards connected to the Chinese UnionPay system for purchases from abroad.
Mir cards were also accepted by some banks in Turkey, Vietnam, Armenia, Uzbekistan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and the breakaway regions of South Ossetia and Abkhazia.
SOURCE: ΑΠΕ-ΜΠΕ
Source: Capital
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