Sanctions ‘Doomsday Weapons’: Is Russia on its way out of the global SWIFT payment system?

One of the most severe sanctions the West may impose on Russia includes its exclusion from the secure communications system SWIFT which is considered the main platform for making payments in international trade. The U.S., Canada, Britain and the EU support the move, while Germany and Italy, which initially expressed opposition, softened their opposition.

In addition to the sanctions that have already been imposed on Russia, the country is facing the blow that may be the hardest of all – its removal from the global payment system SWIFT. It is a secure communication system that enables fast cross-border payments, and is considered the main platform used to make payments in international trade. Removing Russia from this platform will be a significant step in excluding Russia from world trade and will make it difficult for Russian companies to do business.

The situation regarding Russia’s removal from the Swift system is as follows: Yesterday (Friday) Canada, the United States, Britain and the European Union expressed support for Russia’s withdrawal from the system as part of another possible round of sanctions designed to stop the invasion of Ukraine. – They have already softened their opposition – which, according to American and senior European officials, is likely to carry out the move in the coming days.

Russia’s removal from the Swift system will further escalate Western sanctions on Russia, including personal sanctions rarely imposed on Russian President Vladimir Putin and Russian Foreign Minister Lavrov.

Western countries are trying to increase pressure on Moscow after Russian forces launched one of Europe’s largest offensive in Europe since World War II on Thursday. Earlier this week, sanctions were imposed on Russian banks, oligarchs and Russian exports.

Germany: The impact of the move on our economy must be taken into account
Yesterday, European Parliament President Roberta Matsula said that the removal of Russia from the Swift system could be part of a new round of sanctions. Italy, which was reluctant to make such a move, declared yesterday (Friday) that it would not veto the proposal to exclude Russia from the system, and promised to continue working in coordination with its partnerships in the union.
Germany, which has the most massive trade ties with Russia between EU countries, is also open to the possibility of boycotting Russia from the Swift, but must take into account the effects on its own economy, German Finance Minister Christian Lindner said yesterday.

Canadian Prime Minister Justin Trudeau has said his country will support Russia’s removal from the system. British Prime Minister Boris Johnson has called on the leaders of NATO member states to take immediate action to keep Russia out of the Swift system, and EU foreign policy chief said a decision on Swift could be made “in the coming days”.

White House spokeswoman Jen Pesky said the possibility of removing Russia from Swift “is still on the table” and stressed President Biden’s preference to make coordinated moves with US allies. About Russia.

By Editor

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