RUSSIAN OLIGARCHS WAVE GOODBYE TO VISA, SWITCH TO CHINESE CREDIT CARD
[S]o much for the “Russia is becoming increasingly isolated” meme that the West would like many to believe. As Russia continues to sign de-dollarization deals and trade agreements with its BRICS allies while pushing ahead with retaliatory actions against the US and Europe, it appears the ‘sanctioned’ friends of Putin are taking matters into their own hands. Billionaire oligarch Gennady Timchenko (above), among the first to be hit by travel bans and asset freezes by the US, has decided to tear up his Visa and Mastercard, shifting all his credit cards to China’s UnionPay, noting that “in some ways it is more secure than Visa – at least the Americans can’t reach it.”
The Western meme goes something like this..
“Russia risks becoming a pariah state if it does not behave properly,” U.K. Foreign Secretary Philip Hammond said on Sky news this week.
However, after various deals with BRICS and Middle East nations, it appears Russia can find plenty of ‘friends’.
And now the sanctioned oligarchs are de-dollarizing… (via ITAR-TASS Google Translate)
Russian businessman Gennady Timchenko, because of U.S. sanctions imposed against him in March 2014 after the annexation of the Crimea into the Russian Federation, has replaced his Visa and MasterCard cards for the card payment system sponsored by China, Union Pay, and cash.
Timchenko March 20 was included in the U.S. Treasury list of persons with whom the U.S. companies and citizens have the right to maintain the business relationship, including U.S. registered Visa and MasterCard.
The businessman said he stopped using these card payment systems. “We’ll have to, as before, carry a purse or wallet with cash” – complained Timchenko, adding that he now enjoys the Chinese Union Pay card.
“As the sanctions were imposed, they were immediately issued” – he said. “Excellent work! And card is accepted cin many places. In some ways more secure than Visa. At least Americans will not be able to reach it” – said Timchenko.
Inclusion of a businessman in the U.S. sanctions list created trouble for payments and for his wife. “the Wife of Gennady Timchenko had the surgery and could not even pay for it, because the accounts and cards were blocked,” – said Russian President Vladimir Putin on April 17 during his “straight line”, describing the incident as a violation of human rights.
Putin learned about this case after the announcement of sanctions at a meeting of the Russian Geographical Society, of which Timchenko is a trustee. “Vladimir Putin asked how we feel about the new realities. I said, well, all right, but there are nuances. And he told the story the President then mentioned,” – said the businessman.
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While Obama hopes that pressure on the oligarchs will create some civil strife for Putin, we worry that it will merely corner him into survival mode with significant repercussions for the West.