Russia invades Ukraine: US, EU and allies agree to exclude Russian banks from SWIFT

Russia’s exclusion from the SWIFT network, which is considered a last resort due to its potential impact on the European and global economy, may become a reality in the coming days, at least in part.

The European Commission, France, Germany, Italy, the United Kingdom, Canada and the United States published a joint statement on Saturday condemning the Russian invasion.

In it, they committed to take a series of measures that include Delete to ‘choose Russian banks of the S message system.the wife“.

Russia relies heavily on SWIFT for its oil and gas exports.

But this decision may also harm Western companies doing business with Russia.

They said in the statement that the measure “will ensure the separation of these banks from the international financial system and weaken their ability to operate globally.” Without specifying when it will take effect New veto or banks that will be affected.

“As long as Russian forces continue to blockade Kiev and other Ukrainian cities, we are determined to continue to impose costs on Russia that will further isolate it from the international financial system and our economies,” the allies said.

In addition to the SWIFT network, they also promised to “impose restrictive measures.” to avoid That the Central Bank of Russia use Your international reserves To reduce the impact of our sanctions.

The United States invited ‘Iranian model’ The decision of the Western allies to separate Russian banks from the SWIFT network.

Iran was cut off from SWIFT in 2012 as part of sanctions over its nuclear program, although many of its banks have since reconnected with the system.

Russian banks are excluded from the SWIFT system “They will have to Use a telephone or fax machine.The representative of the White House announced.

“In all likelihood, most banks around the world will simply cut off transactions with Russian banks.”

“Only Putin can decide how many additional losses he is willing to incur,” the senior US official said.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the main messaging system used by banks to implement Fast and secure cross-border payments.

It is used by 11,000 banking entities in more than 200 countries and allows international trade to flow smoothly.

Established in 1973, the SWIFT network transports more than 40 million messages a dayto notify users when their payment has been sent or received.

It is believed that more than 1% of the millions of dollars exchanged thanks to this involve Russian transactions.

Ukrainian Foreign Minister Dmytro Kuleba called for Russia’s exclusion from the regime on Thursday when European Union leaders met to discuss sanctions.

You can now receive notifications from the BBC World. Download and activate the new version of our app so you don’t miss our best content.