Russian Banks Blocked From SWIFT International Payment Network
Category: Business News
Some Russian banks have been cut off the SWIFT International Payment System.
The US, European
Union and UK came to this agreement on Saturday as a new measure to sanction Russia over it's invasion of Ukraine.
The SWIFT international payment system is responsible for moving billions of dollars every day between 11,000 financial institutions.
This sanction is targeted at Russia economy, blocking its access to the global financial system and restricting its central bank as retaliation for waging war in Ukraine.
Russia is being restricted from accessing $600 billion in Russian Central Bank reserves, a move expected to bring down the value of the ruble while inflation increases.
The measures were the harshest sanctions on any country in modern times and were meant to “hold Russia to account and collectively ensure that this war is a strategic failure for (Russian President Vladimir) Putin,” according to a joint announcement.
The fine print of the penalties was still being discussed as officials worked to limit the fallout on other economies and purchases of Russian energy.
The Western bloc said the SWIFT disconnection would initially be partial, leaving room for further escalation. The EU also moved to “paralyze the assets of Russia’s Central bank,” freezing transactions.
“Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports,” EU Commission President Ursula von der Leyen said. “Putin embarked on a path aiming to destroy Ukraine, but what he is also doing, in fact, is destroying the future of his own country.”
Union and UK came to this agreement on Saturday as a new measure to sanction Russia over it's invasion of Ukraine.
The SWIFT international payment system is responsible for moving billions of dollars every day between 11,000 financial institutions.
This sanction is targeted at Russia economy, blocking its access to the global financial system and restricting its central bank as retaliation for waging war in Ukraine.
Russia is being restricted from accessing $600 billion in Russian Central Bank reserves, a move expected to bring down the value of the ruble while inflation increases.
The measures were the harshest sanctions on any country in modern times and were meant to “hold Russia to account and collectively ensure that this war is a strategic failure for (Russian President Vladimir) Putin,” according to a joint announcement.
The fine print of the penalties was still being discussed as officials worked to limit the fallout on other economies and purchases of Russian energy.
The Western bloc said the SWIFT disconnection would initially be partial, leaving room for further escalation. The EU also moved to “paralyze the assets of Russia’s Central bank,” freezing transactions.
“Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports,” EU Commission President Ursula von der Leyen said. “Putin embarked on a path aiming to destroy Ukraine, but what he is also doing, in fact, is destroying the future of his own country.”
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