Seeking a way to punish Russia for the attacks on Ukraine, there was a meeting of the group of the seven most industrialized countries in the world (G7) this Sunday (27) and it was decided that the western allies would cut some Russian banks from the world interbank communication system, the Swift.
The Russian banks that would suffer such a sanction were not named in the statement published by the president. Frenchman, Emmanuel Macron, and added that a transatlantic team would be formed to coordinate sanctions against Russia.
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Swift, Society for Worldwide Interbank Financial Telecommunication, is a coordinated system that enables international banks to communicate with each other safely and also transfer resources between different countries, standardizing information financial.
In a statement that was released by the White House, the countries guaranteed that such a sanction "will guarantee that these banks are disconnected from the international financial system and impair their ability to operate globally”.
With administrative headquarters in Brussels, Belgium, the swift system was created with the connection between North Americans and Europeans, in 1973. Currently, Swift has 11 thousand financial institutions that connect in more than 200 countries.
This system operates by processing messages in real time, enabling banks and financial companies to inform each other about payments made and received. In the years 2021, more than 42 million messages were exchanged daily.
The primary objective of this system is to provide institutions with a fast and secure way to communicate. That is, and a secure messaging service for financial institutions
With the exclusion of Russia from Swift, a blocking of all Russian banks from making payments in their international commercial transactions ends up being generated. Taking into account that the Russians are a nation that exports a lot of oil and natural gas to the Union.
The most problematic issue is that companies from other nations end up being sanctioned together, as are also prevented from doing business, this generates a ripple effect that affects the entire system financial.
Some nations were wary of applying the sanction that would shut down Russian access to the interbank wire transfer network, as there was a cloud of concern over governments about how Russian energy imports would be paid for and how creditors would be paid.
“Swift is the financial nuclear weapon, it is what would allow Russian financial institutions to be cut from other institutions around the world,” explained Bruno Le Maire, Minister of Finance French.
“When you have a nuclear weapon in your hands, think before using it, some member states have reservations, France is not one of them,” he added.
Russia's expulsion of Swift will have a huge impact on transactions in Germany and also for German companies, explained the German government spokesman.
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