Gazprombank, one of Russia's largest financial institutions, has issued a warning to its international clients regarding possible payment issues related to UnionPay cards. This alert comes in response to new sanctions imposed by the U.S. government, as reported by the RBC news website on Friday.
In a statement, Gazprombank indicated that clients using UnionPay cards abroad might experience difficulties starting November 21. The bank recommended that customers outside of Russia consider using cash for transactions instead. This advisory aligns with a similar notice issued by UnionPay, informing Russian cardholders about potential challenges when using their cards internationally.
Gazprombank was previously one of the largest Russian banks not affected by U.S. sanctions, but it has now joined over 50 other Russian financial institutions that the U.S. Treasury targeted on Thursday. Despite these sanctions, Gazprombank has assured clients that its domestic operations in Russia will continue without disruption.
In response to the suspension of Visa and Mastercard services in Russia following the full-scale invasion of Ukraine in 2022, Russian banks began issuing UnionPay cards. However, users of these cards have reported difficulties making payments in various countries, including the U.S., Israel, Europe, Asia, and the Middle East.
The U.S. government has cautioned foreign financial institutions that they may face secondary sanctions if they assist Russia in circumventing existing restrictions. As a result, banks in the United Arab Emirates, Turkey, and Thailand have ceased servicing UnionPay cards issued by Gazprombank.
Reports from the Russian state news agency TASS indicate that when customers attempt to withdraw funds using Gazprombank cards at ATMs in the UAE, Turkey, and Thailand, they encounter technical error messages or are informed that their cards are not accepted. Similarly, OTP Bank in Hungary, which was the only bank still servicing Gazprombank-issued cards, has issued warnings that these cards cannot be used for cash withdrawals.
The recent sanctions package, implemented on November 21, targets Gazprombank along with more than 50 other Russian banks, over 40 securities registrars, and 15 officials. The U.S. Treasury believes these measures will hinder the Kremlin’s ability to evade sanctions and support its military activities.
Gazprombank is known to play a crucial role in financing Russia's military efforts in Ukraine, handling payments for military equipment and facilitating transactions for the supply of Russian gas. Prior to the latest sanctions, Gazprombank had already faced restrictions from countries including Australia, Canada, New Zealand, and the United Kingdom.
 Zainab Y.
Also on site :