United States and the European Union (EU)along with other Western partners, today agreed to remove “certain” Russian banks from the international Swift system, a sweeping economic move in response to Russia’s military invasion of Ukraine.
“We are committed to ensuring that certain banks in Russia are removed from the Swift messaging system. This will ensure that these banks are disconnected from the international financial system and disrupt their ability to operate globally,” said a joint statement released by the White House, and also signed by Canada and the United Kingdom.
The exclusion of Russian entities, whose names are not specified in the statement of the Society for Global Interbank Financial Telecommunication (Swift), comes after intense consultations in recent days between the US and European countriessome of whom had raised their doubts about it.
The Swift transaction system is the foundation of the global financial system and is used by 11,000 banks in 200 countries or territories to make transfers.
In addition, Western allies agreed to “impose restrictive measures” against the Central Bank of Russia with the aim of “preventing the use of its international reserves to undermine the impact” of sanctions.
In a phone call with journalists to explain these sanctions, a White House official, who requested anonymity, stressed that “the effects of these measures will be felt immediately in the Russian financial markets” and pointed out that, as a consequence, the Russian currency, the ruble, “will go into free fall.”
On the other hand, Western allies also pledged to act together to “limit the sale of so-called golden passports.”which allow wealthy Russians connected to the Russian government to become citizens and gain access to the financial systems” of the countries signing the statement.
“We stand with the people of Ukraine in this dark hour,” the document concluded, pointing to possible additional sanctions.
After months of tension, Russia launched a military operation in Ukraine on Thursday that began with bombings in several urban centers and continued with the deployment of troopsso that the Russian military units are narrowing the siege of the country’s capital, Kiev.
In reaction to the Russian attack, the US, the EU and the other partners have announced a barrage of economic sanctions against Moscow, including the financial blockade of several of the largest Russian banks, as well as the restriction of exports to Russia of Western high-tech products.
With information from EFE
Source: Larepublica
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