Another Russia-Ukraine news came. In the wake of Visa and Mastercard’s exits, Russia has switched to UnionPay, China’s payment system.
Visa and Mastercard have joined the increasing list of western financial institutions that have announced plans to leave Russia. The country’s central bank stated it has explored options including China’s UnionPay system in light of these developments.
Vladimir Putin’s invasion of Ukraine less than two weeks ago has still not come to an end, with no apparent victor to satisfy either side.
Russia-Ukraine news: Russia start using China-based UnionPay after Visa and Mastercard departures
Russia-Ukraine news: Russia start using China-based UnionPay after Visa and Mastercard departures
The United States and its allies in NATO declined to get involved directly through their own military activities, opting instead for a more 21st-century alternative: placing harsh economic sanctions on the country, oligarchs linked to Putin, and ordinary citizens.
The majority of those strategies were directed against the Russian financial system. One of the first things to be targeted was SWIFT, which had several banks removed from it.
Visa, Mastercard, and PayPal have all announced that they will halt payments to Russian customers.
Given the skyrocketing trade volume throughout the conflict, Russia’s central bank offered yet another option. Local lenders will be able to utilize China’s UnionPay system. UnionPay (known as CUP or UPI internationally), which was established 20 years ago and is based in Shanghai, China, works in over 180 countries, according to Russia’s central bank.
