Russia Committed to Expanding Mir Banking Cards After New U.S. Sanctions

The Russian central bank promised on Friday that it would continue to increase the number of countries accepting its Mir banking cards, following new U.S. sanctions targeting individuals and entities accused of helping Moscow evade financial sanctions.

The U.S. sanctioned Vladimir Komlev, the executive director of the National Payment Card System (NSPK) under the Russian central bank, which manages Mir, citing the sanctions as a means to hold the Russian government accountable for the invasion and ongoing war against Ukraine.

The importance of Mir cards for Russians has significantly increased this year, after American payment system companies Visa and Mastercard suspended their operations in Russia, and their cards issued in Russia are no longer valid abroad.

Cuba, South Korea, Turkey, Vietnam, and a handful of former Soviet republics accept Mir, which is a word that means both peace and world in Russian. Some other countries, such as Iran, intend to start accepting these cards.

The Russian central bank states that Mir cards, as well as other services provided by NSPK, will continue to function as before in Russia.

– Foreign partners have made their own decisions regarding the opening of their infrastructure to accept Mir cards. At the same time, we intend to continue dialogue on the geographical expansion of Mir card acceptance – the Russian central bank stated.

The U.S. Department of the Treasury, on the other hand, reminds that Russia created its own state card payment system in 2014 due to fears of American and European sanctions.

– In his position, Komlev promoted the Mir card network in other countries, which could ultimately help Russia evade international sanctions – the Treasury Department asserted.

In its statement, the department added that ‘non-American financial institutions entering into new or expanded contracts with NSPK risk supporting Russian efforts to evade U.S. sanctions through the expanded use of the Mir national payment system outside the territory of the Russian Federation’.

Analysts point out that this implies that it is unlikely that existing, limited agreements with NSPK, such as those allowing Russians to pay hotel bills abroad, violate U.S. sanctions.

– They must have some indications, either diplomatic or intelligence, that Russia is seeking international connectivity for its domestic payment system to evade sanctions. I don’t think the administration is particularly concerned about Russian tourists visiting Turkey and paying their hotel bills there – believes Brian O’Toole, a former official at the U.S. Treasury.