Russian payment system exits European market after sanctions

The European branch of the Russian payment system "Zolotaya Korona" is ceasing to provide regulated financial services. New money transfers through KoronaPay Europe are already unavailable.

This was reported on the KoronaPay website. The company Koronapay Europe Limited said it has begun the procedure of voluntarily surrendering its license.

"Accordingly, Koronapay Europe Limited will not offer or provide any regulated services, new transfers are unavailable", the company said in a statement.

Clients who sent money earlier can arrange a refund of such transfers through the Korona mobile app.

Koronapay Europe Limited is registered in Cyprus and operated as an electronic money institution under the license of the Central Bank of Cyprus. It is the European structure of the payment service "Zolotaya Korona".

The decision to exit the European market was made less than a month after the European Union imposed sanctions against the Russian RNCO "Payment Center" — the operator and settlement center of "Zolotaya Korona". The company was added to the sanctions list on July 23.

The EU explained the sanctions by the fact that "Payment Center" works in the Russian banking sector, which is a significant source of revenue for the Russian government. The restrictions include freezing assets and prohibiting EU citizens and companies from providing funds or economic resources to the sanctioned organization.

However, Koronapay Europe Limited itself was not added to the EU sanctions list. As Russian media note, after the restrictions were imposed, clients and counterparties began to refuse operations through the system due to sanctions risks.

The sanctions have already led to a reduction in the geography of "Zolotaya Korona" operations. After their introduction, the system stopped a number of transfer routes, including to Georgia and Kazakhstan.

Based on materials from: KoronaPay website