Russia’s Gazprombank cards blocked in 20 countries following U.S. sanctions
Amid new sanctions, Gazprombank cards have become inoperative throughout twenty coungries. A major player in financing the conflict against Ukraine, Gazprombank has been severely impacted by U.S. sanctions, leading to a significant downturn in banking services outside of Russia. Following the initial halt of card services in Hungary, Turkey, and the UAE, a cascade of other countries has joined in. Currently, Gazprombank cards cannot be used for transactions in twenty countries.
According to The Moscow Times, Gazprombank’s UnionPay cards are no longer accepted in Argentina, Hungary, Vietnam, Greece, Egypt, India, Indonesia, Kazakhstan, Cambodia, Qatar, Morocco, Mexico, UAE, Thailand, Tunisia, Turkey, Uzbekistan, South Africa, South Korea, and Japan following U.S. sanctions. Additionally, ATMs in Uruguay are reportedly not allowing to use the cards, advising users to contact their issuing bank.
Moreover, Gazprombank's UnionPay cards have been rejected by China’s major banking institutions. Noteworthy Chinese banks such as Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China have reportedly shown transaction warnings when users attempt to withdraw cash. In certain nations, withdrawals are impossible even from other bank's ATMs, and the Gazprombank app has been removed from the App Store.
Gazprombank insists that these limitations will not affect its banking operations. On November 21, the United States imposed sanctions on Gazprombank and six of its foreign subsidiaries. Previously maintaining access to the SWIFT system despite the ongoing conflict in Ukraine, Gazprombank served as the primary bank for gas transactions with Europe.
The U.S. Office of Foreign Assets Control (OFAC) justified these measures by stating that Gazprombank is actively involved in financing the war against Ukraine, facilitating transactions for military equipment purchases, and processing soldier payments. Subsidiaries in Luxembourg, Hong Kong, Cyprus, Switzerland, and South Africa, along with over 50 Russian banks, are subject to asset freezes. Foreign banks maintaining correspondent relationships with these institutions may also face sanctions.