Friday, August 22, 2014
 
Follow sptimesonline on Facebook Follow sptimesonline on Twitter Follow sptimesonline on RSS
MOST READ



PARTNER NEWS



BLOGS



OPINION



WHERE TO GO?

The Romanovs in St. Petersburg

History of St. Petersburg Museum

Small Tragedy, Fatal Passion

Rimsky-Korsakov Apartment Museum

 

  Print this article Print this article

Bill Gives Visa, MasterCard Reprieve Until Oct. 31

Published: June 26, 2014 (Issue # 1817)



  • Visa and MasterCard together process about 90 percent of payments in Russia.
    Photo: Maxim Stulov / Vedomosti

International payment systems Visa and MasterCard could get a reprieve until Oct. 31 on a security deposit of up to $2.9 billion that the Russian government has demanded they pay if they are to continue operating in Russia.

According to a draft bill by the Finance Ministry published Wednesday on the government's legislation portal, payment systems operating in Russia can be freed from the obligation to pay a security deposit until Nov. 1 this year on one condition. To receive the exemption, the companies will need to stop providing information about money transfers carried out in Russia to clearing centers abroad.

The Federation Council on Wednesday approved a bill giving the government the right to set the details for Visa and MasterCard's payment of the security deposit, Vedomosti reported.

Visa and MasterCard, who together process about 90 percent of payments in Russia, fell victim to international tensions in March after they cut services to two Russian banks in order to comply with U.S. sanctions imposed following Russia's annexation of Crimea.

President Vladimir Putin soon after called for the creation of a national payment system to cut Russia's dependence on companies subject to the political policies of foreign governments. Signed into law in early May, the legislation also requires international payment systems to submit a massive security deposit to Russia's Central Bank in order to continue operating in Russia.

The deposit, estimated by Morgan Stanley at $2.9 billion, is five times more than Visa and MasterCard's joint annual revenues in Russia a country that accounts for less than 4 percent of the companies' global revenues and analysts suggested that the two companies might be better off simply leaving the market altogether. Under the law, the payment systems would also have to build processing centers in Russia and pay fines of up to 10 percent of the funds held by the Central Bank in the event of a unilateral denial of services.

The State Duma last week began discussing amendments to soften the law, and First Deputy Prime Minister Igor Shuvalov said that the deposit payments will be "substantially reduced."

MasterCard meanwhile said that it was looking for a Russian partner to process payments within the country, which could help the company sidestep the law. Visa, however, said that the requirement to pay the massive security deposit is "unworkable," Reuters reported.





 


ALL ABOUT TOWN

Friday, Aug. 22


Get ready to pledge allegiance to the flag during National Flag Day, paying tribute to when, 23 years ago today, the iconic hammer-and-sickle was replaced with the tricolor that now flutters in the wind. Petersburgers will be treated to a free concert on Palace Square, a military parade and a culminating air show featuring Russias Russian Knights stunt pilots.



Saturday, Aug. 23


Uppsala Park plays host to Fairy Noon today, a performance of five separate fairy tales ranging from folk classics to more haunting selections. There will be three different renditions of the tales throughout the day and tickets start at 500 rubles ($13.80) for adults and 300 rubles ($8.30) for children.


Classic Finnish cartoon characters the Moomins expect to receive a warm welcome from Russian fans during todays Moomin Festival at the Pearl Plaza Shopping Center at 51 Petergofskoye Shosse. Become a kid again or introduce a new generation to the beloved creation of Finnish writer Tove Jansson.



Sunday, Aug. 24


The tortured genius of Dutch master Vincent van Gogh gets his day in the centers Konnushnaya Ploschad during Make Art Like Van Gogh, a daylong celebration of the artist that will allow amateur artists to try and replicate the work that made the famed painter world-renowned.


Experience a variety of dances highlighting the diversity of the world around as at the final day of the Ethno-Dance International Dance Festival that has been at the St. Petersburg Humanitarian University of Trade Unions this past week. Tonights performance will feature Egyptian dancers accompanied by local orchestras.



Monday, Aug. 25


Today kicks off the Elena Obraztsovoy International Competition for Young Vocalists in the large hall of the Shostakovich Philharmonic. Talented youngsters will showcase their range over the next six days before a winner is chosen on Aug. 30.



Tuesday, Aug. 26


Love movies but hate all those words? Then check out Rodina Cinema Centers Factor of Consensus film forum this evening. Silent movie classics from the beginning of the 20th century will be screened and accompanied by a pianist, who will provide the soundtrack for the ongoing action. The screenings begin at 7 p.m. Check Rodinas website for more details.



Times Talk