Russia’s new 100-ruble note is impossible to withdraw from ATMs after Western companies pull out
The new 100 Russian ruble notes are impossible to withdraw from ATMs because the Western companies that programmed them have left the country.
The Rzhev Memorial to the Soviet Soldier, a memorial to one of the bloodiest battles of World War II due to the many Soviet casualties, is featured on the new banknote.
On the other side of the 100 ruble note – worth around £1.50 – is a picture of the Kremlin, which regularly draws comparisons between WWII and its war in Ukraine to fuel patriotism in the country.
Bank of Russia Deputy Governor Sergey Belov holds the new 100 Russian ruble banknote. The Association of Russian Banks has called for a six-month delay in the introduction of the new 100-ruble note as it says a new security feature is needed
But the Association of Russian Banks asked for a six-month delay in the introduction of the note because it said a new security feature was needed, according to The Telegraph.
“With the departure of the suppliers, any update of the software of … ATMs, as well as cash registers and terminals, has become impossible,” said the Kommersant newspaper quoting the association.
Western ATM maker Diebold Nixdorf and software company NCR Corporation, companies responsible for installing ATMs and updating their software, are both American multinationals that withdrew from Russia after the invasion of Ukraine by Vladimir Putin on February 24.
Russian banks are struggling to add the security sign without the cooperation of Western companies, which is delaying the rollout of the new patriotic note.
The Rzhev Memorial to the Soviet Soldier, a World War II memorial, is featured on the back of the 100-ruble banknote, with a picture of the Kremlin on the other side
Russians line up outside a Sberbank ATM at the GUM department store shortly after the invasion of Ukraine in February
The 100-ruble note was to join the last printed edition in 2015, printed a year after the Russian annexation of Crimea to celebrate the capture of Ukrainian territory.
Russia has reportedly defaulted on its debt after missing a repayment deadline, following a series of sanctions aimed at targeting the Russian economy.
Russia last defaulted on its international debt more than a century ago in 1918 during the Bolshevik Revolution, but the country defaulted on ruble-denominated bonds in 1998 during the Asian financial crisis.
The Kremlin’s efforts to avoid its first major default on international bonds this century failed in late May when the US Treasury Department’s Office of Foreign Assets Control (OFAC) effectively blocked Moscow from making payments.
The assets of Russia’s central bank were also frozen, preventing it from using £470m of foreign exchange reserves.
Western brands have withdrawn from Russia, leaving malls in Moscow and St. Petersburg to become “ghost towns” with empty main street locations.
Few visitors pass inside the GUM department store with many shops closed due to sanctions in Moscow, Russia, Wednesday, June 1, 2022
A seated woman looks at her smartphone in front of stores closed due to sanctions in a mall. Popular luxury yet affordable clothing brands, coffee and fast food chains have become unavailable to many Russians
Luxury brands such as France’s Chanel and Louis Vuitton have announced they are suspending operations in Russia, adding to the country’s economic isolation imposed by the West in response to the invasion.
Spanish fashion retailer Inditex, owner of Zara, halted operations in Russia in March, closing all 502 stores and halting online sales.
Companies that have stopped doing business in Russia
- Taco Bell
- pizza hut
- British American Tobacco
- Canada Goose
- Max TJ
- Exxon Mobil
- Delta Airlines
- United Airlines
- Hilton Hotels
- Hyatt Hotels
- American airlines
- waltz disney
- Warner Brothers
- Imperial Marks
Prada, Dior, Gucci and Fendi were among those who emptied their shelves in luxury malls in the Russian capital as sanctions begin to weigh.
US food and drink giants including Coca-Cola, Pepsi and Starbucks have suspended or closed operations in Russia in the face of Western sanctions.
Companies ranging from British energy giants Shell and BP to French carmaker Renault have withdrawn from Russia, dealing a hit to their results as they seek to sell their holdings there.
Reckitt began transferring ownership of its business in Russia from April, with the aim of leaving the country as well.
Yum Brands, which operates the KFC, Pizza Hut, Taco Bell, The Habit Burger Grill and WingStreet brands worldwide, said it was suspending all investment and new restaurant development in Russia and would donate all profits from operations in Russia. to humanitarian efforts.
Other major US companies that have recently announced plans to leave Russia include Nissan, Levi jeans, Visa and Mastercard.
McDonald’s in March closed all of its 850 restaurants in the country – where it says it employs 62,000 people – including its iconic location in Pushkin Square, the latest company to withdraw operations in Russia amid Western sanctions.
The company said it would seek a Russian buyer to hire its employees and pay them until the sale closes. He did not identify a potential buyer. McDonald’s said it plans to start removing golden arches and other symbols and signs bearing its name.
As part of the exit, McDonald’s expects to record a non-cash charge of approximately $1.2 billion to $1.4 billion.
“The humanitarian crisis caused by the war in Ukraine and the precipitating unpredictable operating environment have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable,” he said in a statement. communicated.
Russia’s first McDonald’s opened in central Moscow more than three decades ago, shortly after the fall of the Berlin Wall.
Estee Lauder and IBM have also decided to ditch Russia – but big international companies like Unilever and British American Tobacco are staying put.
Other companies have also decided to stay, with some facing a backlash.
A woman walks through an almost empty mall with many stores closed due to sanctions. Dozens of foreign and international companies have pulled out of the country, leaving behind half-empty malls and closed doors in places that once buzzed with shoppers.
A food delivery man cycles past the GUM department store with a Cartier boutique closed due to sanctions in Moscow. Prada, Dior, Louis Vuitton, Gucci and Fendi were among those emptying their shelves in the luxury shopping malls of the Russian capital.
HSBC has a small presence in Russia and “is not considering changing anything at this time”, while pharmaceutical company AstraZeneca said its role in helping doctors provide essential care was “more urgent than ever “. Rival GSK said it would also stay.
Japanese fashion retailer Uniqlo will stay in Russia because its boss believes “clothing is a necessity of life”, while Stella Artois owner AB InBev said it would continue to operate through a local subsidiary.
And earlier in the year, French automaker Renault announced it had handed over its Russian assets to the government in Moscow, marking the first major nationalization of the economic disentanglement.
Russian authorities have said they are ready to nationalize foreign assets – as happened with Renault – and some officials have assured Russians that their favorite brands will have domestic alternatives.
Officials in Moscow have sought to downplay the severity of Western sanctions, promising that Russia will adapt and take steps to stop the flight of foreign currency and capital.