Wednesday, November 26, 2014
 
Follow sptimesonline on Facebook Follow sptimesonline on Twitter Follow sptimesonline on RSS Download APP
MOST READ



PARTNER NEWS



BLOGS



OPINION



WHERE TO GO?

19th Century Portraits

History of St. Petersburg Museum: Rumyantsev Mansion

 

Перевести на русский Перевести на русский Print this article Print this article

National Payment System Given Green Light

Published: April 17, 2014 (Issue # 1806)



  • Visa and MasterCard blocked the banks after either they or their co-owners appeared on a U.S. sanctions list on March 20, drawn up to punish Russia for annexing Crimea from Ukraine.
    Photo: Wikicommons

A national payment system will be created by a new company controlled by the Central Bank, a Cabinet meeting decided Wednesday.

The system will be built from scratch over six months using technology from two existing Russian payment systems, said VTB 24 chief Mikhail Zadornov, who attended the meeting, Itar-Tass reported.

Since MasterCard and Visa abruptly stopped processing the payments of three Russian banks last month, the country has been wringing its hands over the dependence of its financial system on U.S. forbearance.

The companies quickly restored services to two of the banks, but the incident woke Russia up to the fact that if Russia's standoff with the west over Ukraine spikes, Visa and MasterCard, which dominate the Russian payment systems market, could be forced by the U.S. government to abandon Russia, leaving banks and customers in the lurch.

Visa and MasterCard blocked the banks after either they or their co-owners appeared on a U.S. sanctions list on March 20, drawn up to punish Russia for annexing Crimea from Ukraine.

In response, the creation of an independent Russian national payment system has become an issue of national security, its advocates say. President Vladimir Putin called for its creation last month, and amendments obliging banks and payment terminal producers to use it have been submitted to parliament.

On Wednesday, a Cabinet meeting chaired by Prime Minister Dmitry Medvedev delegated responsibility for creating the system to the Central Bank. Adding another line of protection, Zadornov said that by the end of May, Russian banks would create an interbank network to defend themselves against the actions of foreign payment systems.

"The payment system is undoubtedly necessary — not only for banks, but for the country. The risk of bank cards failing due to the will of any other state is absolutely unacceptable," said Yury Bozhor, head of the bank cards department at Otkritie Bank.

But the burst of defensive energy may be misplaced, said another banker. The furore is reminiscent of the French obsession with the Maginot Line in the run-up to World War II, said Maxim Osadchy, head of the analytical department at Corporate Finance Bank. The French built massive fortifications along their border with Germany, but in 1940, when the Germans invaded, they simply outflanked the line by going through Belgium.

Pages: [1] [2 ] [3]






 


ALL ABOUT TOWN

Wednesday, Nov. 26


AmCham’s Public Relations Committee will meet this afternoon in their office in the New St. Isaac’s Office Center on Ulitsa Yakubovicha at 4 p.m.


Zoosphere, an international exhibition focusing on the pet industry, opens today at the Lenexpo convention center on Vasilievsky Island. Not only will items such as toys, terrariums and accessories be available for purchase, but animal enthusiasts can also learn about the latest in veterinary medicine and behavioral training thanks to the conferences and presentations that are part of the event.



Thursday, Nov. 27


The Customs and Transportation Committee for AmCham meets this morning at 9 a.m. in their office on Ulitsa Yakubovicha.


Tickets are still available for local KHL team SKA St. Petersburg’s showdown with Siberian club Metallurg Novokuznetsk tonight at 7:30 p.m. in the Ice Palace outside the Prospekt Bolshevikov metro station. Tickets can be purchased on the team’s website, at the arena box office or in their merchandise store on Nevsky Prospekt.


Celebrate one of Russian literature’s most tragic figures during Blok Days, a two-day celebration of the 134th anniversary of the poet’s birthday. The tragic tenor’s work, which led to writer Maxim Gorky to hail him as Russia’s greatest living poet before his death in 1921, will be recited and meetings and discussions about his contributions to the Silver Age of literature in St. Petersburg will be discussed in the confines of his former residence.



Friday, Nov. 28


Join table game aficionados at the British Book Center’s Board Game Evening. Held every Friday at 5 p.m., aficionados and amateurs alike can come take part in a variety of different games that test one’s intellect and cunning.



Saturday, Nov. 29


Cats, dogs, birds, rodents and reptiles are just some of the things that will walk and crawl at Lenexpo convention center this weekend as part of Zooshow, a two-day exhibition featuring not only man’s best friends but a four-legged fashion show, as well as a food fair that will help pet owners find out more about which kibbles are best for their hungry pets.



Sunday, Nov. 30


Remember the 75th anniversary of the beginning of the Russo-Finnish war in 1939 during today’s reenactment titled “Winter War: How it Was.” More than 200 people will take part in recreating the opening salvoes of the battle for the north in Kamenka, a small village situated between Vyborg and St. Petersburg, using authentic equipment and vintage vehicles from the era. The faux battle begins at 2 p.m.



Monday, Dec. 1


Serbia filmmaker Emir Kusturica is the featured guest this evening at the Lensovet Palace of Culture the Petrograd Side. Fans of the director will get the chance to watch his movie “Black Cat, White Cat,” as well as ask questions about his award-winning filmography. Tickets for the event, which starts at 7 p.m., start at 2,000 rubles ($42.50).



Tuesday, Dec. 2


Today is the final day of “Takoy Festival,” a three-week program of plays based on the works of Dostoevsky, Remarque and other famed European writers, whose work is transcribed for theatrical performances. Tonight’s festival finale is “Fathers and Sons,” a two-act drama staged by the Novosibirsk Academic Drama Theater based on Turgenev’s classic about familial relations.



Times Talk