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Resolution: Save yourself money and trouble by checking and updating credit card with AWS.
My issue was resolved using the following steps:
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First changed the support plan from Basic to Developer - this allowed me to create a technical support incident. This turned out to be not useful, as first response was received only after 13 hours. Apparently, this is outsourced to India, and their time zone is completely out of sync with ours (Pacific Time).
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As customers started to panic, upgraded support plan again to Business, and was able to create another incident and chat online with a support person, who traced down the problem to the key used to encrypt our data volume. "Key Management Service" page in AWS console was inaccessible because it believed that I did not complete the registration (incorrectly). One of the links on the info page went to credit card page, with all my cards there showing as expired. After I updated the credit card expiration date, I was able to start the instance.
I hope it helps someone.
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