Sanctioned Russian banks begin testing national payment system next week

“What sanctions?” is how Russia laughs off Western punitive measures while creating its own alternative system. Much like the attack on Russian oil and gas, the West is shooting itself in the foot here as well. Iran and the sanctions against it in the previous 10 years have also been a prime example of plans backfiring. Iran, a third world economy, has no bottom — and plenty of other needy customers such as China who would be more than welcome to take Persian oil.

 

“The pilot project involves SMP Bank and Rossiya Bank, those for which the story is very critical and important. These are quite large banks,” the head of the Russian National payment system (NPS) Vladimir Komlev said in an interview with Rossiya 24 TV.

The move comes as a part of Russia’s ambitious initiative to move away from the Western dominance of its financial markets. Last month the Russian Central Bank said it would have its own international inter-bank payment system, an alternative to the global SWIFT network up and running by May 2015. Continue reading

Russia’s National Card Payment System is Alternative to Western Counterparts – Medvedev

GORKI (Moscow Region), June 18 (RIA Novosti) – Russia’s national card payment system is not being created to counteract foreign counterparts, but as a reasonable alternative to them, Russian Prime Minister Dmitry Medvedev said Wednesday.

“The national card payment system should give consumers more opportunities to choose, and in fact, most importantly, the idea is not to struggle against foreign systems, this is wrong and in fact a violation of competitive principles. This is a kind of a reasonable alternative to foreign systems, including the famous and most popular ones like Visa and MasterCard,” Medvedev said at a meeting on establishing the national card payment system. Continue reading