Russia’s exclusion from the international banking system SWIFT would have far-reaching implications for German companies and requires a great deal of preparation, a German government spokesman said today as EU finance ministers meet in Paris to discuss strengthening sanctions. against Moscow.
The European Union “wants to sever all ties between Russia and the international financial system,” French Finance Minister Bruno Lemerre said today after the Russian invasion of Ukraine.
The French finance minister, speaking to reporters shortly before the start of the finance ministers’ meeting in Paris, said the French economy “has little exposure to Russia”.
“We want to isolate Russia financially (…) We want to dry up the financing,” he said.
“Our goal is to bring the Russian economy to its knees, it will take time,” said Bruno Lemerre.
Among the sanctions imposed by the European Union against Russia is the drastic restriction of its access to the European capital markets, hindering and burdening its debt financing.
The union will also limit Russia’s access to vital technology by depriving it of access to electronic equipment and software, with the aim of dealing a severe blow to its economy, Commission President Ursula von der Leyen said yesterday.
“These sanctions will affect transport, the aviation sector, semiconductors, all technologies important to the Russian economy,” the French finance minister explained today, while another package of sanctions will affect specific individuals.
However, no action was taken in relation to the SWIFT international banking system, mainly due to German objections. “It’s the last choice,” said the French finance minister.
“There are possibilities for additional measures, but we must be cautious about the consequences: the consequences must hit the Russian economy,” said German Finance Minister Christian Lindner, referring to his French counterpart. hit the German economy.
Germany is highly dependent on Russia for gas, and Moscow’s blockade of SWIFT could have serious consequences for Berlin.
Earlier, Ukrainian President Volodymyr Zelensky called on the European Union to step up sanctions against Russia in order to punish it for invading Ukraine.
“All the possibilities for sanctions have not yet been exhausted. The pressure on Russia must increase. This is what I told European Commission President Ursula von der Leyen,” Volodymyr Zelensky wrote on Twitter, referring to SWIFT.
Kiev has called on Western countries to take the measure, which experts say is a financial “individual weapon” that could hurt European economists.
Source: Capital
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