After initial signs that MasterCard might resist new rules, which required billions of dollars of security deposits, the card brand has now agreed to continue operating in Russia and to give in to new rules set by the Central Bank of Russia, according to a TASS report that quoted MasterCard CEO Ajaypal Singh Banga.
“We have intentions to remain in Russia,” the story quoted Banga saying. “My approach is that we will follow the new rules. The law requires a partnership with the Central Bank of Russia. We think, this is reasonable for Russia.”
That said, Banga stressed that there is little to nothing MasterCard can do about economic sanctions imposed against Russia by the United Nations or any UN member states including the United States. Banged said that his company would have to “react to the events.”
He was also paraphrased as saying that MasterCard “won’t be servicing salary cards belonging to blacklisted Russian banks,” the story said.
“Under new legislation signed by President Vladimir Putin in May, ‘not systematically important’ foreign payment systems need to find Russian partners for settlements and processing within the country before October 31. If they fail to do so, they’ll be charged 25 percent of the average daily turnover in Russia, to be paid each quarter to the Central Bank,” the story reported.