Starting March 30, 2024, the Russian Mir payment system will no longer work with most banks in Armenia, with the exception of those associated with VTB Armenia, a subsidiary of the Russian VTB. The Union of Banks made a statement on March 19 stating that Armenian commercial banks have decided to stop cooperation with the Mir payment system.
According to a source in Armenia’s banking sector cited by TASS, Armenia’s ArCa processing center processes Visa, MasterCard, and Mir payments. Due to the United States sanctions on Russia, which affected the Mir payment system, Visa and MasterCard allegedly refuse to collaborate with entities under sanctions. Consequently, ArCa had to cease Mir payment services to prevent Armenia from losing access to international cards.
In response to inquiries from Banks.am, the Central Bank of Armenia confirmed that commercial banks have the autonomy to decide which payment systems to collaborate with, guided by their risk management strategies, including considerations related to sanctions.
Despite the Union of Banks statement, the press service of the National Payment Card System of Russia to RIA Novosti denied the rumors and stated that the Mir payment system will continue its operations with the banking system of Armenia.
Anatoly Aksakov, chair of the financial market committee of the Russian State Duma, expressed concern over the cessation of Mir card services, citing potential repercussions for Armenian banks, residents, and visitors, including Russian citizens.
The Central Bank of Russia adopted the Mir card payment system for electronic fund transfers established under a law adopted on 1 May 2017. The Mir payment system was created in response to international sanctions against Russia in 2014, aiming to reduce reliance on Visa and Mastercard, which were unavailable in Russia then.
