Parsing the potential for a "swift" reaction if Russia invades Ukraine.

[jmbar2]

Recent statements by President Biden, VP Harris, and Press Secretary Psaki all referred to "swift" actions should Russia invade Ukraine. I'm wondering if these statements are veiled threats to cut Russia off from the Swift banking system, which could have serious impacts on the Russian economy.

Here is how Swift could be used as a "nuclear option".

SWIFT is a secure communications platform used by banks, brokerages, and other financial institutions to send and receive information, such as instructions for transferring money overseas or settling securities trades.

However, it does not actually move or hold money and securities.

Say a German company is buying Russian natural gas, so it needs to pay for it. It can transfer money from its German bank account to the Russian firm's Russian bank by entering the recipient's account number and the SWIFT code.

The German firm then sends a message from its German account, via SWIFT, to the Russian bank saying a money transfer is incoming. Then, when the funds electronically arrive, they will be available for the Russian company to withdraw.

https://www.rferl.org/a/russia-swift-nuclear-option/31601868.html

Russia has been developing alternatives to SWIFT, but none that have been adopted internationally yet.

A cut off from Swift wouldn't necessarily cripple Russia, but would cause a lot of economic problems for them in the short term. It could also impact friendly nations.

The article suggests that it would be better to target their banks and oligarchs.

More at the link

[OAITW r.2.0]

1. That's the key. And it is cross accounts, cross region.

Assets have bubbled up. Will be frozen/liquidated. Too fucking bad, And it is RICO.

[WHITT]

2. As I Posted Weeks Ago

Putin Already Setup An Alternative called SPFS years ago, and will likely merge with one China setup called CBIBPS, and they will then expand to Turkey, Iran, and other countries.

Thereby making any threat by the U.S. moot, not to mention they can utilize any currency they want, instead of being limited to the dollar by SWIFT.