Several Georgian banks stop working with US-sanctioned Unistream

TBILISI. July 24 (Interfax) - Three Georgian banks have suspended operations with the Russian Unistream payment system, whose operating bank is now under US sanctions.

TBC Bank told Interfax on Monday that, for technical reasons, the bank had suspended all operations with Unistream as of July 21, and that the decision is still in force. Meanwhile, funds may still be transferred from Russia to Georgia using the Zolotaya Korona payment system.

The Bank of Georgia reported that it stopped servicing transactions from Russia via Unistream as of July 24. The bank has not yet explained why it is suspending these operations.

Liberty Bank told Interfax that payments through Unistream have been suspended as of July 22 for technical reasons.

On July 20, the United States imposed blocking sanctions against Unistream Bank and four other Russian credit institutions. In parallel, OFAC (the structure of the US Department of the Treasury responsible for the enforcement of sanctions) issued a standard license for these cases, allowing transactions with the sanctioned banks through October 18. Later, Unistream bank said it had developed an infrastructural solution which would allow it to continue working with its partners.

The Unistream payment system was registered in Russia in 2012. In February 2015, the Central Bank recognized it as nationally significant. Now Unistream performs transfers within Russia, as well as to Armenia, Kazakhstan, Moldova, Uzbekistan, Kyrgyzstan, Tajikistan, Belarus, Vietnam, Greece, Georgia, Israel, Cyprus and Mongolia. The system operates over 150,000 cash points around the world.

As of June 1, 2023, Unistream Bank ranked 165th in assets among Russian banks in the Interfax-100 ranking.