Putin Says Visa and MasterCard Will Lose Market Share

Russian President Vladimir Putin said Visa Inc. (V) and MasterCard Inc. (MA) will lose market share in Russia after they blocked some transactions because of U.S. sanctions on individuals and banks.

“We don’t see any steps to punish unconscionable partners, but they are undermining trust, hence will lose market share for sure,” Putin said on Rossiya-24 state television in St. Petersburg today,

Putin said Visa and MasterCard are “very susceptible to political influence and pressure,” and Russia will continue to create its own national payments system.

Visa and MasterCard stopped processing cards for Bank Rossiya last month after the U.S. placed the lender on its sanctions list because of Russia’s takeover of Crimea. SMP Bank, which also had its cards blocked by the two biggest card networks, said March 23 that services would resume soon. SMP Bank’s co-owners, Arkady Rotenberg and brother Boris, were also hit with sanctions.

Seth Eisen, a spokesman for MasterCard, declined to comment. A Visa spokeswoman in the U.S. didn’t immediately respond to a call and an e-mail seeking comment.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net Steve Bailey

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.