Crisis for Russia's Gazprombank: UnionPay card services cut by banks in several countries

Russian Gazprombank's UnionPay cards are no longer being serviced in Türkiye.

Turkish banks have ceased to support UnionPay bank cards issued by Gazprombank, as confirmed by TASS correspondents in Ankara and Istanbul, Caliber.Az reports.

When users attempt to withdraw cash from ATMs, they receive alerts about either a technical error or that the card is unsupported by that bank. Some ATMs also display messages indicating that transactions with the card are not authorized.

This issue has been observed across ATMs in both state-owned and private banks in Türkiye, including those with foreign participation. The refusal to service applies to both corporate and individual UnionPay cards from Gazprombank.

Additionally, financial institutions in the United Arab Emirates have also stopped servicing UnionPay bank cards issued by Gazprombank.

Moreover, banks in Thailand and Hungary stopped servicing the same bank cards.

The bank has reported difficulties with UnionPay cards used abroad, advising customers to withdraw cash promptly for purchases.

On November 21, the US Department of the Treasury announced a new round of anti-Russian sanctions affecting dozens of individuals and entities. Among those sanctioned are Gazprombank, BCS Bank, Centrcredit Bank, and several other financial institutions. The Treasury's document specified that the sanctions also targeted key figures at the Central Bank of Russia, including first deputy governors Dmitry Tulin and Vladimir Chistyukhin, as well as department heads Alla Bakina and Elizaveta Danilova.

US authorities clarified that the sanctions encompass over 50 Russian banks with international connections, more than 40 Russian securities registrars, and 15 government officials.

In response, Gazprombank asserted that the sanctions would not impact its operations, confirming that the bank continues to serve clients and conduct transactions in the financial markets as usual. All of the bank's cards, including those linked to foreign payment systems, will remain functional in stores and ATMs throughout Russia.

The Office of Foreign Assets Control (OFAC) has issued a warning about the sanction risks associated with the Financial Messaging System (SPFS), which is reportedly “used to evade sanctions.” In June, this Russian alternative to SWIFT was included in the EU’s latest sanctions package against Russia, which prohibited European banks from using the SPFS outside of Russia. As of January, the SPFS, launched in 2014, was operating with 20 countries, including banks from Belarus, Tajikistan, and Kazakhstan.