Russia is Developing Cross-Border Payment Gateways with Turkey

Russia is Developing Cross-Border Payment Gateways with Turkey

The Bank of Russia is developing cross-border payment gateways with foreign payment networks and is working with partner countries, such as Turkey, to achieve its objectives. The monetary authority in Russia is also mulling the experimental use of cryptocurrencies in international trade settlements.

CBR is Developing New Payment Gateways

The Central Bank of Russia (CBR) is developing payment gateways with cross-border payment systems with Turkey. The Central Bank Governor, Elvira Nabiullina apprised the lawmakers in the State Duma, the lower house of the Russian parliament.

Russians visiting Turkey have been experiencing payment problems since Visa and Mastercard suspended Russian operations as part of sanctions over the Ukraine invasion. The Russian Mir cards are not accepted in several countries since September 2022.

Turkish banks also quit processing payments with Mir in September last year after a US warning that financial institutions working with CBR’s National Card Payment System, risk being involved in circumventing Russia sanctions. The Turkish media then reported that President Recep Tayyip Erdogan had suggested establishing a new payment system between the two countries.

"We have built a system of gateways between our payment systems so that we can pay. This does not work in all countries... Nevertheless, such opportunities will appear," Nabiullina said, as quoted by the Interfax news agency.

Alternative Payment Options 

The central bank governor has elaborated that alternative payment options are being discussed with each country individually, including using prepaid cards or cards issued by the payment systems of the respective nations. Members of the tourism industry in Turkey have proposed launching cards that Russians can load with rubles and use during their stay in the country.

Russia has been mulling multiple options to bypass financial restrictions imposed by the West over its invasion of Ukraine. The use of digital assets is one of the options under consideration, including decentralized cryptocurrencies, which are yet to be comprehensively regulated in the country.

Nabiullina has also indicated to the State Duma that while the regulator remains opposed to crypto payments inside the country, it is open to allowing international crypto settlements under experimental legal regimes through authorized organizations.

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