The United States Treasury released a list of natural and legal persons targeted by sanctions timed to mark the two year anniversary of the Ukraine military operation. Among those named is the operator of the Mir payment system, the National Payment Card System, which was blacklisted.
OFAC, the Office of Foreign Assets Control within the U.S. Department of the Treasury, indicated that Russia’s core financial infrastructure is under scrutiny. The statement singled out the Mir payment system operator alongside Russian banks, investment firms, and fintech companies as key targets in the latest measures.
The ministry did not disclose the reasons behind the new restrictions. It was emphasized that this is the largest set of sanctions announced since the Central Bank initiated its program in February 2022.
Originally the World map existed for use inside Russia. In March 2022, Visa and Mastercard halted operations in the Russian Federation. In response, a domestic card alternative emerged. Data from the Central Bank showed that Mir cards accounted for about half of all transaction volume in Russia during the first nine months of 2023, totaling 52.5 percent.
Mir cards are not yet widely accepted abroad. They operate in Armenia, Belarus, Vietnam, Kazakhstan, Kyrgyzstan, and Tajikistan.
Impact on operations
NSPK stated that the sanctions would not disrupt domestic payment services. Mir payment system services and Fast Payments System transactions are expected to continue normally within the country.
The company also asserted that sanctions on the National Payment Card System will not affect domestic payment services, and that NSPK continues to process transactions as usual through international cards issued by Russian banks.
Regarding Mir’s foreign partnerships, NSPK noted there were no imposed restrictions on working with international partners. Foreign banks are free to decide whether to accept Mir cards in their infrastructure.
Other sanctioned entities
The U.S. Treasury, in coordination with the State Department, sanctioned more than 500 targets. The Department of Commerce imposed restrictions on 93 companies, of which 63 were Russian. Others are registered in China, Turkey, the United Arab Emirates, Kyrgyzstan, India, and South Korea.
The SDN list includes several U.S.-incorporated credit institutions such as the St. Petersburg Bank, Bystrobank, Morskoy Bank, International Finance Club, Izhkombank, Chelindbank, RostFinancebank, and Regional Credit, among others.
Additional restrictions targeted a range of heavy industry and energy players, including automotive manufacturers, construction and metallurgical firms, mining groups, and defense contractors. Names such as Aurus, PIK Group, Pipe Metallurgical Company, Geopromining, Elbrus Capital, Siberian Coal Energy Company, Rosgeologiya, Yuzhuralzoloto, NOVATEK-Murmansk, Transcontainer, and several metal and logistics entities were listed. Other notable groups and facilities were also included in the sanctions scope.
A number of Russian officials and businesspeople were added to the sanctions list. Notable names include a deputy director of the Federal Penitentiary Service, regional heads of the service, and senior administrators in the government of the Kherson region, along with regional leaders in the Kharkov administration who have been reported as deceased in recent developments.
Initial reactions
Washington also imposed sanctions on the Russian ambassador to Belarus. He was among the earliest voices commenting on the restrictions imposed by Western authorities. The ambassador argued that the sanctions have lost their impact and only reveal a perception of Western weakness, speaking through a Russian diplomatic channel. He urged readers to consider a broader view as Moscow and its partners pursue a different global order.