World leaders are banning Russia from using SWIFT, which has saved the country from financial transactions

The United States and Europe kicked out a number of Russian banks on Saturday SWIFT banking system, cutting off the country from a number of international financial transactions under the toughest sanctions imposed so far for its invasion of Ukraine.

Nations have also imposed severe restrictions on RussiaCentral Bank of Russia.

In a joint statement, the European Commission, the United States, Canada, Britain, France and Germany said the move was necessary. Russia responsibility for a full-scale attack on Ukraine.

The high administration told reporters that the move was “an unprecedented act of global cooperation.”

These steps represent a notable shift in strategy for the West that has imposed sanctions against specific people and businesses for pressure Russia. It now seems that Western countries are taking tougher steps that affect the country as a whole.

Cutting off Russiaaccess yes SWIFT was seen as a “nuclear version of sanctions” and many European countries were reluctant to approve as it would make it more difficult to buy Russian oil and gas.

Lock Russia from SWIFTwhich stands for both World Interbank Financial Telecommunications Societythe consent of all 27 members of the EU, the US and Canada is required.

Cutting off Russiaaccess yes SWIFT was seen as a “nuclear version of sanctions” and many European countries were reluctant to approve as it would make it more difficult to buy Russian oil and gas.

“We are trying to get some Russian banks removed from SWIFT messaging system, ”the message reads. “This ensures that these banks will be disconnected from the international financial system and damage their ability to operate globally.”

SWIFT a high-security messaging network that connects thousands of banks around the world. Forbidding Russia from SWIFT, countries are severely restricting their access to financial markets. This will also complicate it Russia do business with other countries and at least temporarily stop the supply of metals, oil, gas and other goods.

In 2012, Iran lost access to SWIFT as part of sanctions for its nuclear program. As a result, Iran lost half of its revenues from oil exports and 30% of foreign trade.

Ukraine has asked the United States and Europe to download Russia from SWIFT after Russia invaded Ukraine. Some European countries resisted, including Italy and Germany, although the idea received support from the United Kingdom.

This was announced on Thursday by President Biden Russia with SWIFT it is “always an option”, but “now it is not the position that the rest of Europe wants to take”.

The United States, Canada and European allies were also punished with unprecedented steps Russiasanctions bank of Russia, including the freezing of its foreign exchange reserves.

RussiaRussia’s central bank has more than $ 630 billion in foreign exchange reserves in banks in New York, London and Frankfurt. A senior administration official said the sanction would affect all of these reserves, putting enormous pressure on them. Russiaeconomy of the Russian Federation.

This can cause internal disturbances Russia for example, running to the bank, creating panic among Russian companies or raising the value of the ruble.

“Not being able to buy the ruble in Western financial institutions,” – said the official. “For example, Putin’s central bank will lose the opportunity to compensate for the consequences of our sanctions. The ruble will fall even more, inflation will jump, and the central bank will remain defenseless.

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