FLASH NEWS: EU excludes seven Russian banks from SWIFT

FLASH NEWS: EU excludes seven Russian banks from SWIFT

EU excludes seven Russian banks from SWIFT

The European Union is excluding seven Russian banks from the SWIFT messaging system that underpins global transactions as part of its sanctions over Russia's invasion of Ukraine, the EU official journal said on Wednesday.

The banks, which will be given 10 days to wind-down their SWIFT operations, are :

  1. Russia's second-largest bank VTB?(VTBR.MM)
  2. Bank Otrkitie
  3. Novikombank
  4. Promsvyazbank?(PSKBI.MM)
  5. Bank Rossiya
  6. Sovcombank
  7. VEB

However, this effect of this exclusions is now to be read in light of Russian President Vladimir Putin declaration on Monday to banned the transferring of money abroad as part of measures to prop up the ruble which has plummeted in value as a result of Western sanctions over Russia's invasion of Ukraine.?

The dramatic step was introduced as part of an emergency package of measures to prop up Russia’s battered economy. It covers both companies and individuals, barring anybody from sending cash to a foreign account, and comes as the Russian economy was on the brink of an economic crisis

The measure does not affect the servicing of foreign debt, the Central Bank said in a statement following the announcement. A ban on making debt repayments would qualify as a sovereign default.

Dimitri Hu - Managing Partner

MCSA Consulting


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