Banking, finance, and taxes
Visa, MasterCard Cut Service to Two Russian Banks
Published:
Last Updated:
SMP is owned by billionaire brothers Arkady and Boris Rotenberg, who are reported to be childhood chums of Russian President Vladimir Putin.
Bank Rossiya is the country’s 15th largest bank, with $12 billion in assets, and is described by U.S. officials as the personal bank for senior Russian Federation officials. SMP, with assets of around $5 billion, is among Russia’s 40 largest banks.
The actions taken by Visa and MasterCard prevent bank customers from using their cards but do not prevent those customers from accessing their cash directly at the banks. SMP’s owners have objected to the card companies’ actions, according to Reuters:
Due to the fact that the sanctions were imposed on shareholders and not on the bank, we consider the moves by the payment systems unlawful and we are confident that we can resolve the encountered difficulties in the near future.
SMP also said it has no assets in the United States.
Fitch Ratings and S&P have both warned that Russia’s credit rating may be downgraded to reflect the potential impact on the country’s economy of the sanctions. Lower sovereign debt ratings mean that the Russian government would likely be forced to pay higher interest on its borrowing.
Russia’s MICEX index fell 2.1% Friday and is down more than 10% in the month of March.
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?
Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes.
Why wait? Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.