The U.S., European allies and Canada in consensus agreed Saturday to remove key Russian banks from the interbank messaging system, SWIFT which could potentially alleviate the country from global financial system.
“This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally,” the global powers wrote in a joint statement announcing the significant retaliatory measure.
“Any decision to impose sanctions on countries or individual entities rests solely with the competent government bodies and applicable legislators,” SWIFT said in a statement. “Being incorporated under Belgian law, our obligation is to comply with related EU and Belgian regulation.” The group said it’s seeking details on the entities the new effort will impact.
Ukrainian Prime Minister Denys Shmyhal welcomed the development, Tweeting “Appreciate your support and real help in this dark time. Ukrainian people will never forget this! Keep holding the line! We are on our land.”
U.S. and its allies also announced that they will impose restrictive measures aimed at preventing Russia’s central bank from deploying its international reserves in ways that may undermine sanctions.
“This will show that Russia’s supposed sanctions proofing of its economy is a myth. The $600 billion-plus war chest of Russia’s foreign reserves is only powerful if Putin can use it,” a senior administration official said on a call with reporters Saturday evening.
According to a CNBC source, a Washington official said seeking anonymity, “You will immediately see a chilling effect fall over the Russian banking sector even beyond what’s already occurred,” the senior administration official said. “We’ve now targeted all 10 of Russia’s largest financial institutions, holding nearly 80% of the Russian banking sector’s total assets,” the person added.
