"Rostec" plans to use the domestic payment system for internal payments

The state corporation Rostec is going to acquire 25% plus 1 share of the payment system Union Card, with a further increase in its share. This is done to reduce dependence on international payment systems in the context of Russian sanctions, as well as to introduce preferential tariffs for domestic payments, writes Kommersant-Gazeta . Most likely, Novikombank will become the settlement bank for Rostec, and international payment systems will not be used for internal settlements. In any case, the state corporation does not plan to sever cooperation with international payment systems.

Representatives of "Rostec" explain the current deal with the need to "create a modern high-tech tool for implementing the social policy of the corporation." Experts believe that the main reason for the current actions of the organization is the desire to protect themselves from the threats of sanctions. Rostec CEO has been included in the US Sanctions List since April 2014. The second reason is the protection of one’s own interests, as a co-owner of the National Credit Cards operating company.

Experts also believe that "Union Card" may well be used as a captive payment system. At the same time, Union Card cards are not currently used, and they are accepted in a limited number of points. It may well be that Rostec will enter into an agreement with the Chinese payment system China Union Pay (CUP) to enable the issuance and servicing of Union Card co-branded cards abroad. “Owning control over the payment system, the state corporation will be able to set tariffs within its framework, which is much more convenient than cooperating with someone else’s system,” commented Nikolai Smirnov, Chairman of the Board of Directors of the Golden Crown.