Russia ban from SWIFT on the table as Germany drops opposition

[AntiFascist]

Source: Euractiv

The EU is set to discuss in the coming days the ban on Russia’s access to the SWIFT international payments system after the last holdout among the EU27, Germany, dropped its opposition in principle, allowing the bloc to step up sanctions against Moscow following its invasion of Ukraine.

“We are working flat out on how the collateral damage of a decoupling from SWIFT can be limited in such a way that it hits the right people,” Germany’s Foreign Minister Anna Baerbock and Economy Minister Robert Habeck said.

“What we need is a targeted and functional limitation of SWIFT,” they added in a joint statement.

EURACTIV understand this effectively means Berlin has dropped its veto. However, it is not yet clear how the German government exactly aims to make the SWIFT restrictions more “targeted”.

Read more: https://www.euractiv.com/section/europe-s-east/news/russia-ban-from-swift-on-the-table-as-germany-drops-opposition/

[Pachamama]

1. What is the wait?

Ban them NOW

[GB_RN]

2. I'm Not Saying Don't Do It...

But my understanding is, even if the process were started today, it would take a month or so before it would fully take effect and hit Russia. The invasion will be over - one way or another - by then: Whether it’s Russia leaving with its tail between its legs or it’s sitting in Ukraine as an occupation force.

The lack of immediate effect is likely why it’s been held in reserve.

[Lonestarblue]

4. The fact that the US and EU are ready to do this may have an immediate impact on the oligarchs.

I’ve read so much today that I can’t keep sources straight, but the oligarchs’ super yachts berthed in Barcelona for repairs could be seized if the EU expands its sanctions to specific people and their assets in Europe. Yes! The threat of losing their multi-million dollar yachts and not being able to access global banking that affects Russian businesses would seem to make greedy oligarchs unhappy. They will not like the idea of Putin occupying Ukraine indefinitely because the West will punish Russia indefinitely. Time to remove the deranged leader and get back to normal!

[bluecollar2]

6. Even if the effect is delayed

And we know the Russian population will be affected, THEY and THEIR dissatisfaction has to be what puts Putain and his crew to bed.

[Cha]

3. No Quarter!

[BumRushDaShow]

5. CBS (radio) has been reporting the past half hour that it is pretty much a done deal

It has been difficult to get confirmation but am now seeing this from CNBC -

Germany supports restricting Russia from SWIFT bank-communication system
German Foreign Minister Annalena Baerbock speaks at the Munich Security Conference in Mu


nich, Germany, February 18, 2022.
German Foreign Minister Annalena Baerbock speaks at the Munich Security Conference in Munich, Germany, February 18, 2022.
Ina Fassbender | Reuters


Germany has come out in support of restricting Russia from the world’s primary bank-communication system, a move that would severely limit the ability of Russian companies to sell goods overseas or buy goods from abroad. German Foreign Minister Annalena Baerbock said on Saturday that Berlin is working rapidly to restrict Russia from the system, known as SWIFT, in a targeted way that would limit collateral economic damage.

Link to tweet

Baerbock’s announcement marks a shift in German policy that makes SWIFT restrictions against Russia much more likely. Germany has been reluctant to sever Russia from SWIFT over concerns such a move would damage Germany’s economy, which depends on Russian gas imports.

German Finance Minister Christian Lindner said on Friday that Berlin had already implemented an almost total blockade of Russian banks, but transactions were still possible to pay for gas deliveries, and so German companies could wire money to their subsidiaries in Russia. However, Lindner said all options were on the table.

SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is an independent enterprise based in Belgium that serves as an internal messaging system between more than than 11,000 banks and financial institutions in over 200 countries and territories.

https://www.cnbc.com/2022/02/26/ukraine-russia-news-fighting-in-kyiv-zelenskyy-defiant.html#107021458-z5fsmGvfR

TWEET TEXT (IN GERMAN)

Auswärtiges Amt
@AuswaertigesAmt
·
Feb 26, 2022
Regierungsorganisation aus Deutschland
AMin @ABaerbock & BM @BMWK Habeck: „Nach dem schamlosen Angriff Russlands muss sich die #Ukraine verteidigen können. Sie hat ein unabdingbares Recht auf Selbstverteidigung. Die Bundesregierung unterstützt daher die Ukraine bei der Ausstattung mit dringend benötigtem Material. 1/2
Auswärtiges Amt
@AuswaertigesAmt
Regierungsorganisation aus Deutschland
Gleichzeitig arbeiten wir mit Hochdruck daran, wie die Kollateralschäden einer Abkopplung von #SWIFT so eingegrenzt werden können, dass sie die Richtigen trifft. Was wir brauchen, ist eine gezielte und funktionale Einschränkung von SWIFT." AMin @ABaerbock & BM @BMWK Habeck 2/2
12:36 PM · Feb 26, 2022

TWEET TRANSLATION

Ministry of Foreign Affairs
@Ministry of Foreign Affair
·
Feb 26, 2022
government organization from Germany
AMin @ABaerbock & BM @BMWK Habeck: “After Russia's shameless attack, #Ukraine must be able to defend itself. She has an inalienable right to self-defense. The Federal Government is therefore supporting Ukraine in providing urgently needed material. 1/2
Ministry of Foreign Affairs
@Ministry of Foreign Affair
government organization from Germany
At the same time, we are working flat out to limit the collateral damage of decoupling from #SWIFT in such a way that it affects the right people. What we need is a targeted and functional restriction of SWIFT." AMin @ABaerbock & BM @BMWK Habeck 2/2
12:36 PM Feb 26, 2022

Apparently Germany itself was all tied up in use of it too and is trying to avoid completely cutting off it's own businesses that are stationed in Russia...

[Igel]

7. So they dropped their de jure veto.

And have put in place a de facto veto.

[BumRushDaShow]

9. It doesn't seem like a "veto"

but more of trying to keep some kind of connection with their own business presence in Russia.

It is possible (and it doesn't seem that the media has taken the time to do the deep dive into it yet) that other EU countries have or plan to do the same thing - salvage financial connections to their own corporations stationed in Russia while cutting off all the rest of the access, but they haven't explicitly come out in the media to say that they are doing that.

[AntiFascist]

8. God forbid this should harm the luxury trade...

as Italy and Belgium need carve-outs for Gucci products and diamonds.

https://fortune.com/2022/02/25/putin-financial-power-in-western-europe-sanctions/

Italian diplomats reportedly called for the luxury goods sector to be left untouched, allowing Italian exports of clothing, jewelry, and other products to continue being sold in Russia. Belgium was also reportedly unhappy that sanctions were to be placed on the diamond trade, with officials saying that these would do more to harm the diamond trade than Russia itself.

[LetMyPeopleVote]

10. US + EU commit to removing selected Russian banks from Swift

Link to tweet