Seventy foreign financial organizations from 12 countries have already joined Russia’s domestic alternative to the Swift financial system, central bank governor Elvira Nabiullina said on Wednesday.
Major Russian banks were cut off from Swift, the messaging system that underpins global financial transactions, as part of Western sanctions in response to Moscow’s decision to send tens of thousands of troops to Ukraine on Feb.
Nabiullina said the central bank was not releasing the names of those who joined the Russian system due to fears of secondary sanctions.
In April, Nabiullina said 52 foreign organizations were part of a messaging system developed by Russia’s central bank — Financial Message Transfer System (SPFS).
Russia is trying to help its financial sector adapt to unprecedented Western sanctions as Swift’s departure makes it very difficult for a creditor to make or receive cross-border payments.
However, the Russian system lacks international connectivity and operates only during weekday business hours, while the Swift operates 24/7.
Additionally, SPFS messages have size limits that make them less capable of handling more complex transactions.
Source: CNN Brasil
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