Published
09/16/2024, 13:14Russian media reports that the Visa payment system, which left the Russian market in 2022, has applied to Rospatent to register two new trademarks.
According to the application, Visa intends to register trademarks for various classes of the International Classification of Goods and Services (ICGS), which cover a wide range of financial and banking services. These include banking operations, financial management, currency and crypto-asset exchange, debit and credit card services, and electronic payments and transfers. Visually, the trademarks differ: one is made in the traditional blue colour, and the other is a VISA inscription with yellow and blue stripes.
Economic expert Iskender Sharsheev explains this phenomenon as a common practice of international companies.
"Even if companies do not plan to reactivate their operations in the country immediately, they may register trademarks to protect their brand and intellectual property. This is a strategic move, which allows them to retain the ability to return to the market later on if the geopolitical situation changes,” he said.
At the same time, Sharsheev emphasizes that the sanctions strengthening, especially by the US, creates significant risks for foreign companies interacting with Russian financial institutions.
"With major Russian banks such as Sberbank and VTB under international sanctions, the Visa's direct operations' reactivation in Russia looks unlikely. Sanctions restrictions hamper the ability to conduct international transactions and make cooperation with Russian banks risky for foreign partners. Even if Visa decides to strengthen its position in the Russian market, its operations may be limited due to the risk of secondary sanctions that may affect banks and companies cooperating with it,” Iskender Sharsheev explained.
International payments involving Russian banks, as Sharsheev notes, remain a challenge, and even with the new Visa trademarks, international transactions will be complicated as many Russian banks are disconnected from global financial networks.
"This creates difficulties for migrant workers who are now forced to find alternative systems for money transfers. This leads to higher costs and longer transaction processing times. In addition, usage of less reliable and unofficial channels can increase fraud risks,” the expert pointed out.
Given the lack of competition from international payment systems today, the “Mir” national system has strengthened its position in the Russian market. This became possible due to the state support and active promotion of the system within the country. The expert believes that even if Visa returns to the market, its influence will be limited, and the “Mir” system will continue to be a key player in the segment of domestic payments.
"I will repeat, the registration of new Visa trademarks in Russia does not indicate an immediate return of the company to the Russian market. Moreover, in my opinion, under the current conditions, the likelihood of Visa's operations in Russia resuming shortly is extremely low,” Iskender Sharsheev concluded.
It should be recalled that in early 2022, the largest international payment systems Visa and Mastercard declared the suspension of their operations in Russia. This decision was part of the sanctions pressure related to the geopolitical situation and the strengthening of international restrictions against Russia. As a result of this step, all Visa and Mastercard cards issued outside Russia, including cards from Kyrgyz banks, ceased to function on Russian territory.
