Changes in settlements with Russian banks during sanctions: how to avoid restrictions in international settlements

Let's consider the impact of sanctions on Russian banks in more detail and also consider measures to limit the impact of sanctions:


1. Russian banks VTB, Otkritie, Sovcombank, Promsvyazbank and Novikombank were included in the US SDN list. This means that all US citizens and legal entities are prohibited from entering into commercial relations with the above banks and must terminate all economic relations with them.

As a result, customers will not be able to receive Visa and Mastercard cards in these banks, but previously issued cards will continue to work in Russia, but it will be impossible to pay with them abroad.


Customers cannot pay with cards of these banks, which are linked to their phones, using Google Pay, Apple Pay and Samsung Pay services.

Payments through Pay-services will not go through if the POS-terminal (payment device) or online store is serviced by one of these banks.

Clients of banks from the SDN list will not be able to transfer money abroad in any currency.


How to avoid the impact of sanctions in this case:

Get new bank cards in banks that are not subject to sanctions. For payments within Russia, you can also use cards of the Mir payment system. It is necessary to link a card of another bank to the phone or pay with a plastic card, not a phone.

It is necessary to use a POS terminal of a bank that has not been sanctioned, the best conditions are offered for this by Tinkoff Bank and Russian Standard Bank.


2. Sberbank was included in the US CAPTA list, because of this, American counterparties are not prohibited from economic relations with Sberbank, however, US banks are ordered to block its correspondent accounts from March 26, 2022.

Therefore, transfers abroad will not be available to clients of Sberbank and its subsidiaries from March 26, 2022. However, Sberbank customers can use their cards with Apple Pay and Google Pay services, as well as pay with them abroad, including in China.


3. For such banks as: Alfa-Bank, Rosselkhozbank, MKB and Gazprombank, American companies are prohibited from providing financing for a period longer than 14 days.

But in fact, in terms of international settlements for the clients of these banks, nothing should change so far.


4. VEB State Corporation, VTB, Promsvyazbank, Rossiya Bank, Industrial Savings Bank, Black Sea Development and Reconstruction Bank, Genbank came under British sanctions.

But in fact, in terms of international settlements for the clients of these banks, nothing should change so far.

These restrictions are currently set, but it is likely that in the future the situation may change in any direction.