Mir and Belkart will replace Visa and Mastercard in the two countries, says Dmitry Krutoy
A cardholder inserts a SberBank MIR credit card into an ATM slot © Sputnik / Asatur Yesayants
Russia and Belarus have finalized the pairing of their national payment systems, allowing them to bypass Western-dominated networks, according to the Belarusian Ambassador to Russia, Dmitry Krutoy.
In an interview with RIA Novosti on Monday, the envoy said that with the move the two countries’ central banks have set an example for all industry regulators on how to work without much publicity, while solving problems.
According to Krutoy, the sides have fully unified their currency legislation. The integration of the Belarusian national payment system Belkart with Russia’s Mir enables users to buy goods and pay for services both in Belarus and Russia, marking a “complete replacement of Visa and MasterCard,” the envoy pointed out.
Krutoy also noted that 85% of all financial settlements and trade between Russia and Belarus are currently carried out in national currencies. “We are moving away from the US dollar. The use of yuan, rupees and other friendly currencies is expanding,” he said.
Russia started developing its own national payment system when the US and its allies targeted the country with sanctions in 2014. Mir cards entered circulation in December 2015.
Last year, when Moscow was hit by further sanctions in response to its military operation in Ukraine, and many Russian banks were cut off from SWIFT, Visa and MasterCard, the government started promoting the domestic system as a reliable alternative.
Russia’s SPFS interbank messaging system ensures the transfer of financial messages between banks both inside and outside the country. According to the Russian Central Bank, all Belarusian banks have now been connected to the system.
Mir cards issued by Russian banks are currently accepted in Cuba, Armenia, and Belarus, among others.
Venezuelan banks have also started accepting Mir cards, the head of the country’s Central Bank, Calixto Jose Ortega Sanchez, revealed at the St. Petersburg International Economic Forum earlier this month. Another 15 countries have reportedly expressed an interest in accepting Mir cards on their soil.
The Belkart payment system was created in 1994 with the aim of ensuring Belarus’s financial resilience from external impacts, while increasing the share of cashless transfers inside the country. Last year, several Belarusian banks were disconnected from SWIFT as part of the Western sanctions against the country.
For more stories on economy & finance visit RT’s business section
