On Friday, Gazprombank warned clients that new U.S. sanctions could cause issues when using UnionPay payment system cards abroad. Since Russia’s full-scale invasion of Ukraine, UnionPay has been the only international payment system to continue operating in Russia, while Visa and Mastercard stopped working with Russian banks in early 2022.
“If you are abroad, we recommend using cash,” the bank told customers in an announcement on November 22.
According to the news agency TASS, Gazprombank’s website no longer issues UnionPay cards. Beginning next week, the bank will also prematurely end its “Cashback Abroad” promotion for UnionPay cards.
On November 21, the U.S. Treasury Department’s Office of Foreign Assets Control imposed sanctions on Gazprombank and roughly 50 other Russian banks. Foreign buyers have used Gazprombank to make payments for Russian gas. On November 22, Kremlin spokesman Dmitry Peskov accused Washington of “trying to hinder gas supplies to Europe.”
Despite rising demand in Russia for UnionPay cards, many issued through Russian banks, including MTS Bank and Tinkoff Bank, have had their services suspended abroad due to Western sanctions since at least late 2023.
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