The Central Bank of Armenia has moved to block local banks from servicing the Russian Mir payment card, effective March 29, citing the risk of potential American sanctions. This decision comes after Armenian authorities weighed the sanctions landscape and its impact on cross‑border payment flows, with TASS reporting the development and noting the official source of the information.
According to a source familiar with the matter, the Armenian processing center handles multiple payment networks in parallel, including ArCa, Mir, Visa, and Mastercard. The source explained that Visa and Mastercard have declined to maintain services with a processor that continues to support Mir, which is currently subject to sanctions. In practical terms, that stance from Visa and Mastercard creates pressure on local banks to reexamine their card processing arrangements and align with broader international compliance standards. The report underscores that the Central Bank framed the measure as a private‑sector decision aimed at avoiding friction with Russia, while signaling that public policy considerations and sanctions risk informed the move.
Earlier, Armenia’s National Payment Card System had discussed restrictions impacting World cards within the country. NSPK stated that the Mir system itself does not limit operations for Armenian financial institutions, implying that the constraint is primarily a consequence of the relationship between the processing center, the card networks, and the international compliance environment. NSPK is owned by the Bank of Russia, and it operates as the backbone for debit card transactions across Russia. It also oversees the Mir payment system, which functions as a key component of the Fast Payment System’s clearing and settlement mechanisms. The evolving sanctions climate has prompted banks and payment operators to reassess exposure to Mir and related networks, affecting cross‑border card usage and settlement routes. The broader implication is a shift in how Armenian banks connect to global card networks and how sanctioned platforms are treated in daily transactions.
In related developments, a major Kazakh bank previously announced it would halt Mir card transactions, marking another sign that institutions in the region are recalibrating their exposure to Mir amid ongoing geopolitical considerations. The sequence of events highlights how payment networks, sanctions policy, and network‑level compliance intersect, influencing the availability of certain card services for customers in Armenia and neighboring markets. Consumers and merchants alike may experience changes in acceptance and processing timelines as financial institutions adjust their arrangements in response to the sanctions regime and the evolving stance of global card networks.