Banks worldwide halt services for Russian Gazprombank cards following US sanctions

Financial institutions across the globe are severing ties with Russia’s Gazprombank after the latest round of US sanctions, marking another significant blow to Moscow’s economy. Banks in the UK, Turkey, the UAE, Hungary, and Thailand have restricted or fully stopped servicing UnionPay cards issued by Gazprombank, according to reports from Reuters and Russian media outlets.

In the UK, HSBC, the nation’s largest bank by assets, announced it would cease processing payments from Russia and Belarus for personal banking customers. The bank stated on its website that it has taken this measure as part of its compliance with international sanctions.

Similarly, Turkish banks, which have been key intermediaries for Russian financial transactions, have reportedly halted services for Gazprombank’s UnionPay cards. Banks in the UAE, Hungary’s OTP Bank, and multiple financial institutions in Thailand have also joined the move.

This financial isolation follows Washington’s imposition of sanctions on Gazprombank, which include a ban on new energy-related transactions involving the US financial system. The sanctions, part of a broader effort to weaken Russia’s ability to fund its war in Ukraine, target one of the country’s major state-controlled lenders, crucial to its energy sector.