Go to ...

The Newspapers

Gathering and spreading news from various Russian Newspapers

The Newspapers on Google+The Newspapers on LinkedInRSS Feed

Saturday, January 20, 2018

Russia restores justice to transfer money to Ukraine

American payment systems will soon ban money transfers from Russia to Ukraine. This is a symmetrical response to the actions of Russia Ukraine, which the fall deprived the Russian payment system of a tidbit on the Ukrainian market. As now the Ukrainian migrant workers are sending money home?

The state Duma meeting on Wednesday adopted in the third reading a law that restricts money transfers from Russia to foreign countries through foreign payment systems.

“This is an adequate reaction from the Russian side, but it could be more efficient. The Russian payment system has lost a significant portion of the money traffic”

According to the text of the law, in case of introduction of a foreign state prohibitions in the area of payment systems, operators of which was CBR, the cross-border transfer from Russia to the territory of this state can only be carried out by the operator, which is controlled by Russian legal entities. These rules will apply to transfers without opening a Bank account.

It is, in fact, the answer to Kiev to limit the work in Ukraine WebMoney, “Yandex.Money”, QIWI Wallet, “Wallet one wallet one”, as well as the ban on the work of Russian payment systems (“Hummingbird”, “Zolotaya Korona”, “Unistream”, “International money transfers Leader”, Anelik, Blizko).

But under the ban of Ukraine did not get other foreign (non-Russian) of the payment system, which can still be used without problems. This leads to a restriction of competition on the Russian market of payment services in favor of foreign payment systems. To equalize a situation and introduce such restrictions.

“The fall of the Ukrainian national Bank decision about the prohibition to send money not only through the popular system of cash transfers like “Zolotaya Korona”, “Unistream” or “MoneyGram”, but that is quite absurd, through virtually all e-wallets suddenly put in a very favorable competitive conditions, the translation using the American Western Union and MoneyGram. Russian parliamentarians eliminate these unjustified benefits,” says chief analyst GK TeleTrade Peter Pushkarev.

“This is an adequate reaction from the Russian side, but it could be more efficient. The Russian payment system has lost a significant portion of the money traffic, because Ukraine is one of the leaders on cross-border transfers from Russia to CIS,” agreed technical Director international payment gateway Fondy Global Maxim Kozenko.

According to him, the sanctions of Ukraine on “a Golden Crown” had 27% market share of private remittances in Ukraine, “Unistream” – 10%, the “Blitz” – 4% – 3%. They were deprived of this market share, and in their place came Western Union and MoneyGram, which prior to the ban of Ukraine held a market share of 36% and 16%, respectively.

The price is billions of dollars. According to the CBR, the amount of private transfers from Russia to Ukraine in 2016 amounted to as much as 10,129 billion. Although in comparison with the year 2013 observed a two-fold decline, then the amount of private transfers was of 20.78 billion.

However, to put an end to this kind of translation yet. In the framework of the Russian amendments to foreign payment systems there is a way they can register on the territory of Russia.

“All market participants will be forced to reach an agreement. The international payment system will resort to integration with the Russian system, which will lead, on the one hand, to return traffic to the Russian players of the market, with another – the price of services,” says Kozenko. Visa and MasterCard will remain available, as the interaction will take place through the national payment system in the WORLD, he adds.

In addition, there remains the option for Bank transfer (for example, from a Russian Bank in Ukrainian). In this case, however, necessarily need to open a Bank account, which is important for informally working in Russia and receiving salary in envelope.

While the payment system will adjust to the new rules, beneficiaries can be the banks. “Commission for cross-border transfer of 2 percent or more will receive now the Russian banks, which should help to partially compensate for our banks losses incurred as a result of “squeezing” their Ukrainian business, and the recipient pay additionally upon conversion of rubles into hryvnia,” – said Pushkarev.

It seems that yet remain instant transfers through “fast and furious” with the Commission of 1.8%, which uses “Mail of Russia”.

And of course, there are several variants of “shadow” money transfer from Russia to Ukraine, which will begin to develop. For example, Pushkarev says, in the name of the Ukrainian beneficiary in a Russian Bank in advance to start the account and card or put two cards in the name of the sender, one of which is handed over or sent by mail to the recipient.

“According to banking regulations, to transfer the card to third parties, giving her the pin, is not permitted. But in the case of, for example, Visa Electron cards or access cards where the owner name is not specified, it is unlikely that the breach could be seen,” – said Pushkarev.

In this case, you will be able to avoid the fee for cross-border transfers, but will probably have to pay a rather big fee for cash withdrawals in Ukraine. But the money without a fee for removal can be used for cashless payments.

This symmetric answer of Russia aims including to show Ukrainian citizens that their government, in fact, expelled from the country “daughter” of Russian banks, and imposing a ban on Russian payment system, thereby make worse only by its own citizens, sums up the expert. The main part of the translations, as you can guess, goes from Russia to Ukraine and not back.

According to the survey, working abroad for 5 million Ukrainians in Russia – 2.5 million people, said Director of the Ukrainian analytical center Alexander Okhrimenko. According to the Ukrainian economist Oleksandr Koltunovich, 5 million Ukrainians who went abroad, Russia was chosen 25% (or 1.25 million) of Ukrainians (in the first place Poland – 36%, or 1.8 million people).

In fact, the labor force today – one of the best export commodities of Ukraine. Even the IMF with its loans is not so important for the economy of Ukraine. For comparison: in 2016, the Ukrainian migrant workers sent to Ukraine $ 7 billion (and it is only through legal channels), and foreign investment has been only $ 3 billion (this also includes IMF loan and Eurobonds under the state guarantees USA). “It turns out that the IMF gave a billion, and the Ukrainians – seven billion. But this billion have yet to return, and 7 billion – is not necessary”, – said Okhrimenko. Until 2014 foreign investors still invested in Ukraine more than was forwarded to the Ukrainian migrant workers.

But today all hope the country is on migrant workers. “The export of labour force – the future of Ukraine’s economy after the reforms”, – said Okhrimenko. If not for their money (a net inflow of currency into the country), the hryvnia devalued would be much stronger.


Related posts:
Kudrin may become the Creator of the economic program for Putin
The Commissioner: Nord stream-2" will hit Ukraine and Poland
Russia and Saudi Arabia came to an agreement on stabilization in oil prices
Belarus has raised transit tariffs for Russian oil


More Stories From Economy