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Russian banks may issue cards with China’s UnionPay as Visa, Mastercard cut links -Breaking

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© Reuters. FILEPHOTO – Chinese tourists pass a China UnionPay sign outside a Macau pawnshop. This picture was taken November 20, 2013. Picture taken November 20, 2013. REUTERS/Tyrone Siu/File photo

LONDON (Reuters] – Russian banks will no longer issue credit cards using Visa and Mastercard payments systems. Credit cards that were issued overseas by Russian banks are expected to cease functioning after March 9. Russia’s central Bank stated Sunday. Some local lenders may opt for China’s UnionPay system.

According to the bank, Russian Mastercard and Visa cards issued by Russia will be accepted inside Russia for their validity until they expire.

This ban applies also to cards issued locally by banks that are not foreign affiliates, according to the bank.

The announcement of the merger came shortly after U.S.-based payments companies. Visa Inc (NYSE:), and Mastercard Inc. (NYSE:), announced that they would suspend operations in Russia. They will join the growing list of businesses cutting business links to Russia.

It was also stated that Russian banks are planning to use UnionPay in order to issue cards, which it claimed is possible in 180 other countries.

It was noted that UnionPay is used by many Russian banks. However, Sberbank, Tinkoff and others could use the system to issue cards similar to Russia’s Mir payment system.

After many countries blocked Russian airspace, thousands of Russians including tourists are now stuck abroad. Russia has also retaliated by banning many foreign airlines from flying.

Citizens currently abroad were advised by the central bank to withdraw money before the ban became effective.

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