Kazakhstan’s banks can continue to accept payments and transfers through the Mir payment system, with cash withdrawals available to cardholders via ATMs. This update came from the press service of Kazakhstan’s Financial Market Regulation and Development Agency on Friday, December 9.
On December 8, 2022, regulators received a note from the Office of Foreign Assets Control, a division of the U.S. Treasury, confirming that there was no objection to using Mir debit cards. The Mir network has been used by some Russian citizens relocating to Kazakhstan to conduct day-to-day financial activities. Banks in Kazakhstan decide whether to connect to Mir based on their own growth plans and strategic priorities.
The agency stated that Mir transactions will be subject to heightened scrutiny to ensure they cannot be leveraged to bypass sanctions. A briefing with local banks was held to clarify how Mir cards can be used within Kazakhstan, the agency added. In a separate interview with socialbites.ca, Bulat Sultanov, Director of the Kazakhstan Institute for Strategic Studies, called the decision appropriate. He argued that Russian citizens should be able to use Mir cards comfortably on Kazakh soil.
“The Mir card should circulate within Kazakhstan, and all Russian Federation citizens who own it should be free to use it here,” Sultanov said. He noted that financial systems today are deeply integrated into a global network and that relationships are not strictly market-based. The question for him remains whether such use will bring capital or investments into the republic, leaving it to financial institutions to evaluate. The key point, he added, is that the region remains within the CIS and the Eurasian Economic Union, with longstanding ties and mutual support. He emphasized that Russians should feel welcomed and assisted, while acknowledging the need to manage any potential economic impact.
Sanctions against Mir and alternative payment systems
Earlier, in September, the U.S. Treasury warned parties helping Mir use outside Russia about possible sanctions. Turkish banks reportedly stopped accepting Mir cards, and Kazakhstan’s largest bank, Halyk Bank, paused Mir card withdrawals at ATMs. By December 9, information circulated about an emerging alternative to Mir cards being developed by Russia and Turkey.
“Russia and Turkey are working on an alternative payment method to Mir cards, and it should be available soon. Pressure from foreign institutions on Turkey’s financial system, which is closely tied to Western banking, has led some lenders to refuse Mir services,” stated Alexei Yegarmin, chair of the Russian-Turkish Business Council. He predicted that a new solution could appear at the start of the next tourist season, around May to June 2023, noting that ruble payments are already accepted in some Turkish hotels and even in certain shops.
There were early discussions that Russians might issue TROY cards through Turkish banks to pay in Turkey. No official rollout has been announced. TourDom.ru reported that possibility with caution. Earlier this winter, Russian Foreign Minister Sergei Lavrov showed interest in Mir’s use in Azerbaijan, where three banks reportedly connected to the Russian analog of SWIFT. Other nations also signaled openness to Mir, including India, Malaysia, Indonesia and Thailand. Authorities in the United Arab Emirates, Egypt, the Maldives, Cuba and Bahrain have shown interest in connecting to Mir as well. At present, Mir cards are accepted in eleven countries, including Vietnam and South Korea. Prof.Travel provides ongoing coverage of this topic.
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