YEREVAN, May 21. / ARKA /. A possible departure of Visa and MasterCard from the Russian market will not affect holders of Visa and MasterCard cards issued by VTB Bank (Armenia), its CEO, Yuri Gusev told a news conference today.
Visa and MasterCard have about six weeks to decide whether a Russian law requiring them to pay hundreds of millions of dollars to operate there is worth the cost.
After Visa and MasterCard stopped processing payments at four Russian banks in response to US sanctions, Russia passed a law creating its own national payment system and imposing rules for foreign firms, including fines for denying services and a mandatory security deposit starting in July.
The new law requires firms to make deposits at the Russian Central Bank that will be tapped if they block transactions. Purchase, MasterCard and Visa said on Tuesday this would amount to “hundreds of millions” of dollars.
According to Gusev, all the rhetoric that pops up in the press, suggests there is a bargaining going on and a discussion of compromises.
“I think that a compromise will be found because it is a huge business and no side wants to lose it,” Gusev said.
Dmitry Rudenko, chairman of Leto Bank (VTB Group), said VTB Bank (Armenia ) is an independent issuer and has its own processing center and therefore, a possible departure of Visa and MastrrCard from Russia will not affect cardholders in Armenia.
VTB Bank (Armenia) is owned fully by Russian VTB Group. It runs 67 branches in Armenia, more than any other bank. ($ 1 – 412.89 drams). -0-
