European Union reaches political agreement to block transactions of the Central Bank of Russia

The foreign ministers of the countries of the European Union (EU) reached a political agreement this Sunday to block financial transactions with the Central Bank of RussiaThis was announced by Josep Borrell, head of European diplomacy.

With that measure,more than half of the reserves of the Russian Central Bank will be paralyzed, since they are kept in establishments in G7 countries″, said Borrell, who reinforced that the action should be implemented before the opening of the markets on Monday.

This action was not the only one that has been taken this Sunday, the 27th, since the European Union also reached a political agreement to exclude several Russian financial centers from the Swift interbank payment system, an unprecedented blow to the country’s economy in response to the invasion of Ukraine.

“We have reached an agreement to remove certain Russian banks from Swift and impose restrictive measures that will cripple the assets of the Russian Central Bank”, said the High Representative of the European Union for Foreign Affairs, Josep Borrell, at a press conference.

While the blocking of transactions with the Russian Central Bank will enter into force at the time the measure is published in the Official Journal of the EU, lThe exclusion of entities from Swift still requires a further legal processexpected imminently.