World leaders divided on whether to eject Russia from Swift payment system

[steve2470]

World leaders divided on whether to eject Russia from Swift payment system

https://www.ft.com/content/69f72de5-d727-496d-9f9d-316db7bdaf03

Western leaders are split on whether Russia should be ejected from the Swift international payments system, a move that would deliver a heavy blow to the country’s banks and its ability to trade beyond its borders.

Boris Johnson, the UK prime minister, is pushing “very hard” to remove Russia. However, Olaf Scholz, German chancellor, warned on Thursday that his country would not support such a dramatic move and neither would the EU, according to officials close to sanctions negotiations. A German official declined to comment, saying only that “all options are still on the table”.

Johnson has faced criticism in the UK for deploying what critics described as “peashooter” sanctions in response to the first stage of Russian aggression in Ukraine; he is now trying to push western colleagues to deploy very tough reprisals.

“The PM is very keen on this — he’s pushing it very hard,” said one British official, referring to his efforts to eject Russia from Swift. Johnson also raised the idea at a meeting with City of London executives on Wednesday.

[OLDMDDEM]

1. This needs to be done.

We need to do everything to control all money flows in and out of Russia. Lock accounts, control assets in the accounts.

[nycbos]

2. Check to see if Scholz owns any stock in Russian gas companies.

[WHITT]

3. Waste Of Time

1) 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, allowing all of them to be protected.

Thereby making any threat by the U.S. moot, not to mention they can utilize any currency they want, instead of being limited to dollars by SWIFT. That especially benefits Putin, as he can use Rubles.

2) SWIFT risks more than $30 Billion stuck in the system if they do it.

[Buddy2]

4. Germany won't allow this

They are on the hook for 40% of their Natural Gas supply.
They don’t have their own LNG terminal. And it’s winter.
Germany had 4 combat ready aircraft at the end of 2018 due to maintenance spending. There is zero threat here to Putin.