Russia’s president decreed in May 2024 that American Express could liquidate its Russian business, a little over two years after the company had suspended all its operation in Russia in response to what the bank called Russia's ‘unjustified attack on the people of Ukraine’.
The bank ranked 300th in Russia's banking system in terms of assets, the central bank said. Since mid-2022, foreign banks have required presidential approval to exit the market or sell stakes in their Russian business.
In March 2022, shortly after Moscow launched its full-scale invasion of Ukraine, which Russia called a 'special military operation', American Express said it had dozens of staff inside Russia. It was not immediately clear how many staff the bank still has in the country.
In August 2024, the Bank of Russia announced plans to launch its central bank digital currency, the digital ruble, by July 2025, following successful pilot tests. The rollout will be gradual, with full implementation expected to take five to seven years, depending on the convenience and adoption by people and businesses.
In July 2024, the Russian central bank advised businesses to explore alternative payment methods, including cryptocurrencies, due to Western sanctions impacting trade with countries like China, India, and Turkey. Sanctions have targeted key Russian financial institutions and have created payment challenges for the economy.
At a St. Petersburg conference, officials highlighted the need for adaptable financial solutions and discussed easing cryptocurrency regulations for international transactions. They also mentioned ongoing efforts among BRICS nations to develop an independent payment system, though such a system would take time to establish. VTB representatives stressed the sensitivity of international payment mechanisms, noting that such information is closely guarded.
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