ST. PETERSBURG, May 23 (RIA Novosti) – New Russian regulations on international payment systems are excessive and Moscow should make a deal with Visa and MasterCard in order for them to continue working in the country, VTB Bank President and Management Board Chair Andrei Kostin said Friday.
“The law that has been passed by the Duma [Russian Parliament] is excessive, it creates problems. It would be rational for both the government and Central Bank to negotiate with Visa and MasterCard in order for these companies to continue operating in Russia. They should stay and work here, it is not reasonable to fall into flag-waving now,” Kostin said during the St. Petersburg International Economic Forum (SPIEF).
Visa and MasterCard said earlier this week they were evaluating the possibility of continued operations in Russia after recent amendments to a law on a national payment system significantly toughened regulations on their activity in the country. Visa has said it was ready to leave Russia.
The law to create a national card payment system, signed by Russian President Vladimir Putin earlier this month, tightens requirements for payment system operators with clearing and settlement centers outside Russia.
Specifically, it obliges foreign payment systems starting July 1 to make quarterly contributions to a special account in the Central Bank in the amount of 25 percent of the average daily turnover. In addition, penalties are introduced for operators of payment systems for unilateral termination of customer service.
The amendments came after Visa and MasterCard denied service to several Russian banks in late March as a result of US sanctions amid the escalating conflict in Ukraine, raising concerns about the security of the country’s financial system.
Russian lawmaker Anatoly Aksakov told RIA Novosti on Wednesday that Russian lawmakers may soften new requirements for Visa and MasterCard, reducing the size of the required security deposits.
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