WASHINGTON – The United States, European allies and Canada on Saturday agreed to remove key Russian banks from the interbank messaging system, SWIFT, an unusual step that would separate the country from much of the system. global financial system.
“This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally,” the global powers wrote in a joint statement. announced substantial retaliatory measures.
Moscow’s exclusion of SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, means that Russian banks will not be able to communicate securely with banks outside its borders. Iran was excluded from SWIFT in 2014 following developments to Tehran’s nuclear program.
Russian President Vladimir Putin enters the St. George at the Grand Kremlin Palace in Moscow.
Mikhail Klimentyev | AFP | beautiful pictures
SWIFT is an independent business based in Belgium that acts as an internal messaging system between more than 11,000 banks and financial institutions in more than 200 countries and territories.
SWIFT said in a statement: “Any decision to impose sanctions on countries or individual entities rests solely with the competent government agencies and applicable legislators.” “Established under Belgian law, our obligation is to comply with the relevant EU and Belgian regulations.” The group said it is looking for details on the entities the new effort will impact.
After the announcement, Prime Minister of Ukraine Denys Shmyhal welcomed the measure, write on a tweet“Appreciate your real support and help during this dark time. The people of Ukraine will never forget this! Keep holding the line! We are on our land. “
In addition, the United States and its allies vowed to impose restrictive measures to prevent the Russian central bank from deploying international reserves in ways that could weaken sanctions.
“This would show that Russia’s supposedly evidence-based sanctions on its economy are a myth. Russia’s over $600 billion worth of foreign exchange reserves is only as powerful as Putin can use it,” a senior administration official said on a call with reporters on Saturday night.
The unnamed official who shared new details about Washington’s position said the impact of these sanctions would be felt immediately in Russia.
“You will immediately see a chilling effect on the Russian banking sector that goes beyond what has already happened,” the senior administration official said. The person added: “We have now targeted all 10 of Russia’s largest financial institutions, which hold almost 80% of the total assets of the Russian banking industry.
Asked if the US has any indication that China, the world’s second-largest economy, will financially support Russia amid sanctions, the official said. China did not come to the rescue.”
“China is actually restricting some of its banks from providing credit to facilitate energy purchases from Russia.
The leaders of the European Commission, France, Germany, Italy, the UK, Canada and the US also plan to limit the sale of so-called golden passports. The official described them as a loophole that allows wealthy Russians connected to the Kremlin to become citizens in other countries and access certain financial systems.
“We will be hunting for yachts, luxury apartments, money and the ability to send their children to luxury colleges in the West,” the official added.
The announcement comes after rounds of joint sanctions were imposed against Russia for its unprovoked attack on Ukraine.
On Friday, the US joins the UK and the European Union announced sanctions against Russian President Vladimir Putin and Russian Foreign Minister Sergey Lavrov. In the weeks leading up to the invasion, the Biden administration threatened sanctions in hopes of dissuading Putin from further aggression against Ukraine.
