Kyrgyzstan halts Russian Mir card amid sanction pressures
Kyrgyzstan has suspended the acceptance of Russian Mir payment cards, but it is possible that the system might soon be restarted, according to reports from "The Moscow Times". "We cannot completely stop our trade relations with Russia," comments Akyłbek Japarov, the Kyrgyz Cabinet of Ministers chairman.
Further complications have arisen for Russia with its Mir payment card system, which is intended as a domestic alternative. The Kyrgyz company Interbank Processing Center (IPC) has announced that starting Friday, it will cease servicing Mir bank cards issued by Moscow in adherence to sanctions imposed by the United States.
Kyrgyzstan suspends Mir card services
Akyłbek Japarov, the chairman of the Kyrgyz Cabinet of Ministers, as reported by "The Moscow Times", disclosed to local parliamentarians that the Latvian software provider IPC was exerting pressure on Bishkek to cease support for the Russian Mir system.
"A Latvian company develops the IPC's software. They sent a letter stating that if we do not suspend the acceptance of Mir cards, they will disconnect us from the IPC system," Japarov said.
That's why we temporarily suspended [Mir card services] - he explained.
Restoration of Mir card services possible?
The Prime Minister suggested that Bishkek possesses "a number of mechanisms and measures" to re-establish the Mir system's operations while evading sanctions. Implementation of these solutions cannot happen instantly.
Discussions on the operation of Russian cards may arise in talks with the USA. The Kyrgyz politician revealed that during his visit to Washington, scheduled for the second half of April, he will attempt "to clarify the situation" with American counterparts.
We cannot completely halt our trade and economic relations with Russia, our strategic partner - Japarov stated to the Kyrgyz parliamentarians.
"But unfortunately, companies under sanctions will threaten our monetary system. We must proceed with extreme caution," he added.
Further problems for the Mir system
The halt of Mir card services in Kyrgyzstan represents another setback for the Russian payment system, which had emerged as an alternative for Russian travellers after their Visa and Mastercard stopped functioning abroad due to the invasion of Ukraine.
Earlier, banks in Kazakhstan ceased accepting Russian Mir cards, with ForteBank citing "the need to limit risks in cross-border payments" as the reason. Armenia made a similar move. The United States Treasury Department has cautioned banks outside the United States that servicing Mir cards could " support Russian efforts to bypass U.S. sanctions".
Despite efforts, the Russian payment system struggles to find new partners in the elusive "banking darknet" to evade sanctions and maintain the Mir cards' functionality overseas. With few allies in this arena, Russia is currently in talks with banks from Iran, Cuba, Venezuela, and Syria.
