EU will cut Russian banks from the SWIFT system as more and more nations are showing support for imposing restrictions on Russia’s access to the international banking system. But what will that mean for the country? Let’s find out more in today’s altcoin news.
The European Union decided to isolate Russia from the international financial system including blocking some banks from the SWIFT system, as the biggest messaging network that underpins global financial transactions. EU will cut Russia from the SWIFT and the institutions will be barred from conducting interbank transactions with non-Russian entities. The move came a few days after Russian military forces attacked multiple cities in military bases in Ukraine.
Cyprus, Hungary, and Italy were the ones opposing the move but then expressed support over the Weekend while Germany is in favor of targeted and functional restrictions on the region. The EU Formalized the support on Saturday in a public statement attributed to France, Germany, the UK, Canada, the US, and Italy. The statement reads:
“We commit to ensuring that selected Russian banks are removed from the SWIFT messaging system. This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.”
The EC committed to blocking Russia’s Central Bank from using the international reserves and preventing the Russian oligarchs from buying passports in other nations to enter the global financial system. The officials in the EC plan to launch a transatlantic task force to implement the sanctions enacted by the UK, Japan, EU, Canada, South Korea, by freezing the assets of sanctioned individuals and companies within their jurisdiction. Germany’s foreign minister Annalena Baerbock said in a statement:
“We are working flat out on how to limit the collateral damage of decoupling from SWIFT in such a way that it affects the right people.”
Given that the SWIFT system is based in Belgium, its support across the European region was critical to expel any country like Russia. While US President Joe Biden is supporting the decision to remove Russia from the SWIFT, there’s a chance things go much worse. The White House press secretary Jen Psaki said that the administration has not taken a SWIFT ban on Russia off the table:
“There’ll be ongoing discussions about that. As you know, SWIFT is a messaging service that connects 11,000 banks. And many would argue that there are ways that — that Russia — the Russian leadership could get around that over the course of time, but it certainly remains an option on the table.”
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