Banks of Kazakhstan and Kyrgyzstan stop working with Mir cards

CenterCredit Bank, one of the largest in Kazakhstan, stopped working with cards of the Russian payment system Mir from February 26. The bank did not disclose the reasons for the restrictions.

Halyk Bank, the largest in Kazakhstan, reported on April 2 that the financial institution no longer services cards of the Mir payment system either at ATMs or through POS terminals. In Kyrgyzstan, on April 3, banks also do not accept Mir cards. The restrictions came into effect early, as it was announced that they would come into force on April 5.



Key players in the financial system of Kazakhstan, and in Armenia, almost all banks, except for the VTB subsidiary, previously refused to work with Mir cards. Financial organizations in these countries explained their position by fear of falling under secondary US sanctions, which included NSPK, the Mir card operator, on the SDN blocking list. At the same time, Kyrgyzstan, Kazakhstan and Armenia are members of the EAEU. Refusal to use Mir cards can be considered a violation of the association’s charter.

For Kyrgyzstan, remittances from Russia account for about a third of GDP. The situation with Mir cards will not fundamentally affect this flow, since there are other transfer channels. A special issue is the need to restore order in this area. The narrowing of the territories where Mir cards are valid has a negative reputational impact. These cards also do not work in China, which is the main trading partner of the Russian Federation and a colleague in BRICS+. Due to sanctions, significant difficulties arose with paying for foreign trade contracts not only with China, but also with Turkey.

Large re-export flows of goods go through Kyrgyzstan, Kazakhstan and Armenia to the Russian Federation. Financial difficulties may arise in this area as well. Russia should accelerate the development of digital payment solutions that would be resistant to any sanctions pressure. The transition of settlements and transfers between Russia’s partner countries in the EAEU to digital rubles can make the movement of money as transparent as possible.

Russian Prime Minister Mikhail Mishustin, speaking with a report in the State Duma, said that the West continues to do everything to limit Russia’s access to the international payment infrastructure. The government and the Central Bank are making every effort to provide businesses with the opportunity to conduct operations, he assured.