In the face of withering sanctions imposed by the U.S., Russia has reached out to China to consider a payment system that allows them to bypass the American banking system, thereby avoiding sanction restrictions.
Russian Prime Minister Dmitry Medvedev, speaking from Beijing, said his government’s Karta Mir payment system should be linked to China’s UnionPay system. Saying it would be part of a “more balanced” global economic system, he also noted it would avoid the “problems that sometimes arise when you use American payment systems.”
“I think that the more financial instruments there are in the modern world,” Medvedev said Wednesday. “The more stable the global financial system will be.”
But, according to the Russian National System of Payment Cards, only about 10 percent of the population uses the Karta Mir system, despite the fact they are widely accepted everywhere in the country. It’s most obvious purpose is sanctions avoidance. With China’s help—which is likely—it will be even more difficult to consider sanctions a viable option to apply diplomatic pressure on Vladimir Putin and his government.
Full article: Russia, China Mull Payment System to Bypass U.S. Sanctions (TruNews)