Ukraine has stated that preparations are underway to remove Russia from the international banking network
US President Joe Biden is “seriously weighing”CNN reported Saturday that Russia’s key banks and financial institutions were supported by the SWIFT network. Though such a move would also require the support of the EU, whose members have not yet officially announced a final decision on it, Ukraine’s foreign minister claims “technical preparation for the decision”It has already started.
According to CNN, Biden is considering supporting the expulsion of Russia from the SWIFT network, which facilitates cross-border payments between the world’s banks and financial institutions. CNN quotes US officials saying that Biden may cut off Russia from the SWIFT system entirely, but others tell CNN that it is only possible to remove certain members. “banks and entities”It is currently being looked at.
According to the report, Biden’s administration had discussed the possibility of banning the US Federal Reserve as well as EU leaders.
Biden issued sanctions against Russia following a Russian military offensive launched in Ukraine Thursday. Biden told reporters that he did not rule out the possibility of excommunicating Russia via SWIFT at the time. “that’s not the position that the rest of Europe wishes to take.”
But, over the following days, more European countries came out for a ban. According to the Polish Prime Minister, Italy, which heavily depends on Russian energy imports for its livelihood, voted in support of the ban on Saturday. Hungary, however, also jumped onboard. Mateusz Morawiecki. Germany is still reluctant to support the initiative, and Finance Minister Christian Lindner stated on Friday that Berlin should first consider the costs of supporting it. Russia accounts for over half the natural gas imports to Germany, which will increase after it closes its nuclear power plant.
Dmytro Kuleba, Ukrainian Foreign Minister said on Saturday that plans were already in place to expel Russia from the network. “The official decision has not yet been made, but the technical preparation for the decision and the implementation of this sanction has already begun,”Kuleba wrote that the ban was afoot and described it as an “impending ban”. “victory”Please see the following: “all defenders of Ukraine.”
Even though there is widespread support in the US and Europe for such a ban, some opponents claim that Russia’s expulsion from SWIFT will not only hurt Russians but other countries who trade with Russia. Furthermore, they argue that such a move would facilitate the emergence of rival systems, like China’s CIPS, and hasten the US dollar’s demise as the world’s reserve currency.
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