Russian President Vladimir Putin has vowed to build a Russian rival to financial transaction companies Visa and Mastercard as the US-led sanctions on Russian financial institutions begin to bite according to Bloomberg

Visa and Mastercard stopped processing card transactions for Rossiya Bank and SMP Bank after the US imposed sanctions against the companies to pressure Putin over his actions in Crimea in recent weeks.

The sanctions prohibit US companies and individuals from doing business with firms on the block-list, with those targeted because of their close relationships with the Russian premier. As US companies, Visa and Mastercard are required to follow the rules laid down by Washington or face serious fines.