Putin’s Decree Leads to American Express License Cancellation
On August 13, 2024, Russia’s central bank revoked the banking license of American Express Co.’s Russian subsidiary. This action follows the subsidiary’s request for voluntary liquidation. The decision comes after a decree from Russian President Vladimir Putin in May permitted American Express to wind down its operations in Russia.
The Russian unit of American Express, which was previously ranked 300th in the country’s banking sector by assets, had its operations suspended in response to Russia’s invasion of Ukraine over two years ago. Since mid-2022, foreign banks have required approval from Putin to exit the Russian market or to sell stakes in their Russian operations.
According to Russia’s corporate registry, SPARK, American Express’s Russian subsidiary filed for liquidation in early July. This move aligns with the company’s announcement on March 6, 2022, to halt all operations in Russia and Belarus. Consequently, American Express cards issued globally became unusable in Russia, and those issued within Russia could not be used abroad. Prior to this, around 60% of Russian travel agencies utilized American Express for booking services, including hotels, air, and train tickets.
American Express had previously severed connections with Russian banks affected by U.S. and international sanctions.
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