Russia's Promsvyazbank Transfers Funds to Gagauzia Through Transnistrian Banks, Raising Privacy Concerns

In a significant move earlier this year, Eugenia Guțul, the leader of Gagauzia, signed an agreement with Russia's Promsvyazbank to issue MIR cards to the region's residents. This agreement allows pensioners and state employees to receive financial aid from the Russian organization Eurasia.

The funds are transferred to these MIR cards through Transnistrian banks, specifically Eximbank and Agroprombank. To access this aid, residents must fill out special applications requiring personal data such as passport information and pension details. The processing of these applications is managed through the offices of the Șor team, and in some cases, through school directors and mayors.

Why this matters: This agreement has significant implications for the region's geopolitical dynamics and raises concerns about Russia's growing influence in Eastern Europe. The potential consequences of this deal could lead to increased Russian control over the population and undermine Moldova's efforts to integrate into the European Union.

Once approved, a code and password are sent to the applicant's phone, enabling them to access their Promsvyazbank account. However, this process has raised significant concerns about data privacy, as Russia does not guarantee the confidentiality of personal data. Experts warn that the MIR cards could be used to exert control over the population.

Promsvyazbank, a Russian state-owned bank, plays a vital role in Russia's defense industry complex. The MIR payment system, established in 2015 following the annexation of Crimea, is Russia's national payment system. Since 2018, the salaries of state employees in Russia have been transferred to MIR cards, despite many opting to transfer their salaries to more convenient Visa and MasterCard systems. Following the outbreak of the war in Ukraine, Visa and MasterCard ceased operations with Russian banks, and the US imposed sanctions on the MIR payment system operator.

The MIR payment system is accepted in a limited number of countries, including Belarus, Laos, and Cuba, in addition to the Transnistrian region. In Transnistria, three main banks—Sberbank, Eximbank, and Agroprombank—allow the use of MIR cards. Agroprombank, part of the Sheriff Holding, enables residents to create virtual MIR cards, which are in fact cards in a Russian bank cooperating with Agroprombank.

Concerns about Russian influence in Gagauzia are not new. The region, which has a significant Russian-speaking population, has long been a point of contention between Moldova and Russia. Transnistria, a breakaway region of Moldova, has its own government and economy, heavily influenced by Russia. The ongoing efforts to resolve the Transnistrian issue are closely tied to Moldova's integration into the European Union.

The agreement between Gagauzia and Promsvyazbank highlights the complex geopolitical dynamics in the region. With data privacy concerns and the potential for increased Russian influence, the situation remains a critical issue for both local residents and international observers.

Key Takeaways

• Gagauzia's leader signed an agreement with Russia's Promsvyazbank to issue MIR cards to residents.
• Funds are transferred through Transnistrian banks, raising concerns about Russian influence.
• Personal data is required for application, sparking data privacy concerns.
• MIR cards could be used to exert control over the population, experts warn.
• The agreement has significant implications for Moldova's EU integration efforts.