BISHKEK,Kyrgyzstan – Kyrgyzstan has halted its acceptance of Russia’s Mir payment cards due to pressure from its national payments operator’s Latvian software provider. The Interbank Processing Center (IPC) in Kyrgyzstan decided to cease servicing Mir bank cards in order to minimize the risk of secondary sanctions after the U.S. Treasury imposed sanctions on Mir’s Russian operator. The IPC’s software, developed by a Latvian company, prompted Bishkek to sever ties with Mir. As a result, Kyrgyzstan temporarily suspended the use of Mir cards.
This move aligns with similar actions taken by other Central Asian nations. For instance, Dushanbe City Bank in Tajikistan suspended Mir payment card operations earlier, citing technical issues. Uzbekistan also restricted the use of Mir cards issued outside the country, while Kazakhstan, Turkey, and Vietnam suspended Mir payment cards due to warnings from the U.S. Treasury regarding potential sanctions on institutions supporting Russia’s payment system outside of Russia. The situation reflects the broader impact of international sanctions on financial systems and underscores the complexities faced by countries navigating geopolitical tensions.
Kyrgyzstan’s Prime Minister, Akylbek Japarov, alluded to having undisclosed mechanisms to restore Mir’s operations while avoiding sanctions. However, he emphasized the need for caution due to the potential impact on their monetary system. Japarov plans to discuss the situation with U.S. counterparts during his visit to Washington in April. Despite Kyrgyzstan’s strategic partnership with Russia, concerns persist that the country may serve as a conduit for Russia to access sanctioned goods. The rise of Mir (meaning “peace” and “world” in Russian) as an alternative payment option for Russian travelers followed Visa and Mastercard restrictions due to the Ukraine conflict. The U.S. Treasury has warned international banks against dealing with Mir, citing risks of supporting Russia’s evasion of U.S. sanctions. In response, Armenia and Samsung’s mobile payment service have ceased servicing the card.
