Turkey's Ziraat Bank suspends use of Russian Mir payment system (updated)

Turkiye Vakiflar Bankasi TAO

29/09/2022 10:35

(Adds background)
    By Can Sezer
       ISTANBUL, Sept 29 (Reuters) - Turkey's state lender
Ziraat Bank has suspended use of Russia's Mir payment system,
Chief Executive Alpaslan Cakar told Reuters on Thursday.
    The suspension comes as the United States cracks down on
those accused of helping Moscow skirt sanctions and as Western
nations grow concerned over increased economic ties between
NATO-member Turkey and Russia.
    Turkish President Tayyip Erdogan was quoted as saying last
week that Turkey would have to take steps on finding an
alternative to the Mir system, "whether we like it or not" due
to sanctions.
    Two private banks, Isbank and Denizbank, suspended their use
of the Mir system last week after Washington expanded its
sanctions on Russia, including targeting the entity that runs
the payment system.
    But Reuters had reported, based on sources, that state banks
could continue using the Mir system, while offering more
transparency and assurances to the West that it was not being
used to circumvent sanctions.
    Turkey's two other state banks, Halkbank and Vakifbank, have
not commented on the issue.
    NATO member Ankara opposes Western sanctions on Russia and
has close ties with both Moscow and Kyiv, its Black Sea
neighbours. It has also condemned Russia's invasion and sent
armed drones to Ukraine as part of its diplomatic balancing act.
    Uzbekistan's UZCARD system said on Friday it had suspended
the processing of payments via Mir cards. 
 (Reporting by Can Sezer; additional reporting by Ebru Tuncay;
Writing by Ali Kucukgocmen; Editing by Ezgi Erkoyun and Mark
Potter)
 ((ali.kucukgocmen@thomsonreuters.com , @alikucukgocmen;
+905319306206; Reuters Messaging: Reuters Messaging:
ali.kucukgocmen.thomsonreuters.com@reuters.net))