The European Union, United States and other western nations on Saturday agreed to cut off a “certain number of Russian banks” from SWIFT (Society for Worldwide Interbank Financial Telecommunication) payments system.
France, Germany, Italy, the United Kingdom and Canada jointly agreed to “ensure that these Russian banks are disconnected from the international financial system, which would harm their ability to operate globally,” a joint statement issued read in part.
The group also said they would impose “restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of the sanctions.”
Explainer: Why SWIFT matters to Russia
SWIFT, otherwise known as the Society for Worldwide Interbank Financial Telecommunication, is a secure messaging service that more than 11,000 banks and other financial institutions around the world use to communicate.
“[E]ssentially, SWIFT has been described by many as the Gmail of global banking.
SWIFT has become a hotly debated topic in the conversation about Russian sanctions.
Cutting Russian banks’ access would further isolate the country from the global financial community, and put more economic pressure on the Kremlin.
Recall, US President, Joe Biden had earlier imposed series of sanctions on Russia hours after the country invaded Ukraine.
These sanctions include: sweeping export controls and a freeze on billions of dollars’ worth of Russian assets.
The EU, United States and United Kingdom also announced on Friday that they would impose sanctions on Russian President Vladimir Putin and Foreign Minister Sergey Lavrov.
