Russia Bans SWIFT-Notes that the Central Bank of Russia has de facto banned Russian financial institutions from using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) international settlement system for domestic transactions, meaning that SWIFT is only allowed to be used for international payments.
Russia Bans SWIFT-Meanwhile, the Russian Foreign Ministry made it clear on March 20 that Russia would suspend its participation in the Black Sea Food Initiative if it failed to implement issues including “reconnecting Russian agricultural banks” to the SWIFT settlement system. The week before, the Russian side has stated that it does not oppose the extension of the Black Sea Food Initiative for 60 days, but other parties want to extend the agreement for another 120 days.
Russia Bans SWIFT-As of the beginning of the Russia-Ukraine conflict last year, SWIFT had about 11,000 members, including nearly 300 Russian banks. If these Russian banks were removed from the system, oil and gas export revenues, which account for more than 40 percent of Russia’s total revenue, would be cut off, and its economy would immediately suffer significant impacts, including significant fluctuations in its currency, as well as a massive flight of capital.
Russia’s removal from SWIFT would hurt not only Russia, but also large European economies, and the continent’s energy imports would inevitably be implicated, That’s why, when discussing the use of this “financial nuclear weapon”, U.S. allies had differences, especially Germany, which is highly dependent on Russia’s energy exports, once opposed. In the end, the sanctions did not cover all major Russian banks.
Currently, 10 Russian banks have reportedly been cut off from SWIFT, including the two largest banks in Russia, Sberbank and VTB Bank of Russia. Banks that have not been cut off, but are being sanctioned by the U.S. and Western blockade, may also face obstacles in using SWIFT. But overall, the Western measures have not had the effect of a so-called “financial nuclear weapon.
Repost：from sinar
