The European Union (EU) has expelled seven Russian banks from Swift, an international payment network, as part of a crackdown on Russia. Banks such as VTB, Bank Otkiti, Novicombank, Promsvass Bank, Bank Rosia, Sowcombank and VEB have been excluded from Swift.
Swift’s ban is considered to be the most damaging of the economic sanctions announced against Russia. Swift is an international payment network between the world’s leading banks. Its uniqueness lies in the fact that billions of dollars worth of transactions can be made quickly over the Internet through the messaging system.
With the coming into force of the ban, the foreign financial transactions of Russian banks and financial institutions will come to a complete halt. More than 11,000 banks in more than 200 countries are currently part of Swift. Remittances to and from Russia will be completely blocked. Foreign financial transactions of Russian banks will be frozen. Money transactions in the Russian export-import sector will stop.
This would have added even more fuel to Russia’s already significant economic momentum. Financial transactions from abroad to Russia will also be difficult. More than 300 Russian banks and financial institutions are part of Swift. It is expected that Swift’s ban on Russia’s petroleum and gas trade will be eliminated.
But VTB, the largest of the banned banks, said the move to remove Swift would not adversely affect it. A VTB spokesman said the alternative system had been in place since 2014 to circumvent Western sanctions.
english summary; Seven Russian banks expelled from Swift network
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