LONDON/MOSCOW, February 27 (RIA Novosti) - American Express could sign an agreement with several Russian banks on the issuance of ruble-denominated AmEx cards, a senior executive said Monday.
Jonathan Knaus, the general director of American Express Bank in Russia, said the bank would continue the strategy of American Express aimed at work with local banks.
In April 2005, American Express signed an agreement with Russian Standard Bank on the exclusive right to issue and promote AmEx cards denominated in rubles and foreign currency in Russia.
However, unhappy with this decision, some major Russian banks sent a letter to American Express. In their letter, the bankers expressed their hope that they would also be given the right to issue American Express cards in the country. 'This is normal practice - other payment systems operate according to the principle of providing equal rights to banks," the letter said.
Knaus said the issuance of consumer cards launched by Russian Standard Bank in December 2005 under the agreement with American Express was one of the promising areas of the company's business development in Russia. He said the cards to be issued by Russian Standard would be ruble denominated, unlike the AmEx cards previously issued in Russia. He added that other Russian banks would be able to give their clients AmEx cards issued by Russian Standard Bank.
At the same time, Knaus said the Russian holders of dollar- and euro-denominated American Express cards could also feel at ease, adding that these cards would be serviced through the AmEx center in England.
