Russia restrains money transfers to Ukraine

Russia bans money transfers to Ukraine via foreign payment systems.

Russia bans money transfers to Ukraine via foreign payment systems.

Alexandr Demyanchuk/RIA Novosti
The law restricts express money transfers via foreign payment systems

The law aimed at restricting express money transfers from Russia to other states with the help of foreign payment systems came into force on May 4.

The document is primarily a response of the Russian side to the actions of Ukraine related to the ban of Russian payment systems. The document will concern only express transfers, conducted without opening a bank account. According to the law, in the case a foreign state introduces restrictions on Russian payment systems with operators registered by the Central Bank, cross-border express transfers can only pass through an operator controlled by a Russian legal entity. Thus, direct express transfers between Russia and the state, which introduced a ban on the Russian payment system, would not be possible.

Information on foreign countries introducing bans on payment systems with operators registered by the Central Bank will be posted on the official website of the regulator.

Alma Obaeva, Chairman of the Board at Non-commercial partnership "National payments council" told TASS that despite the ban on express transfers from Russia to Ukraine, such services will not leave the market, but their price might increase.

Head of the State Duma Financial Market Committee Anatoly Aksakov believes that the ban on express transfers to Ukraine will increase transparency and control over cross-border transfers.

"I think that transparency of these operations will increase, which is a plus. But the downside is that when transferring even small sums, identification will be required. If it was not possible to do this before, now it will become mandatory," Aksakov told TASS.

At the same time, according to him, the restrictions will mainly affect Ukrainians working in Russia.

In October 2016, the Ukrainian authorities imposed sanctions on Russian payment systems. The National Bank of Ukraine (NBU) sent out telegrams to participants of Russian payment systems regarding the termination of operations with these systems, and also obliged banks to return their certificates on registration in Russian payment systems to the regulator.

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