The European Union is unlikely at this level to take action and cut Russia off from the international SWIFT interbank payment system as it prepares a new package of sanctions against Moscow for its action against Ukraine, EU sources told Reuters.
The foreign ministers of the Baltic states, once ruled by Moscow but now members of the EU and NATO, today demanded that Russia stop having access to SWIFT.
The other EU member states are reluctant to make such a move because while it would hit Russian banks hard, it would make it difficult for European creditors to get their money back, and Russia has already set up an alternative payment system. .
“Urgency and consensus are a top priority at the moment,” said the EU diplomat, adding that “at this stage it means that no action is being taken on SWIFT, as this would have far-reaching consequences in Europe as well.”
Another EU diplomat stressed that “I do not know of any agreement on SWIFT sanctions at this point”.
Data from the Bank for International Settlements (BIS) show that European banks have the lion’s share of the nearly $ 30 billion foreign banks’ exposure to Russia.
SWIFT, based in Belgium, is a messaging network widely used by banks to send and receive money orders or information, and is overseen by central banks in the US, Japan and Europe.
Source: Capital
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