Russia government is planning to ease collateral demands imposed on Mastercard and Visa to continue operating in the country.
The country’s Deputy Prime Minister Igor Shuvalov said the requirements and restrictions will be lowered significantly but the law won’t fully relieve the companies of responsibility, Interfax news agency reported.
Following Western sanctions over Russia’s annexation of Crimea, Russia passed new legislation in April which requires Visa and MasterCard to pay a joint $3.8bn security deposit to work in the country.
The law, set to go into effect on July 1, initially enabled Moscow to confiscate 25% of the companies’ average daily turnover in Russia from the past quarter amid another service disruption.
The legislation also required card operations be cleared through a national payment system.
Both Mastercard and Visa expressed their displeasure over the law and hinted at closing Russian operation but softened their stance after officials showed a willingness to relax the requirements.