Ban on international payments to seven major Russian banks –

Ban on international payments to seven major Russian banks –

The European Commission has specifically announced which Russian banks will be removed from the international payment system Swift. It concerns seven banks, the second of which is in Russia. To date, financial transactions such as transfers and payments are no longer or very little possible at these banks.

These are the following banks: VTB Bank, Vnesheconombank, Sovcombank, Bank Rossiya, Promsvyazbank, Novikombank and Bank Otkritie. Some names of these banks already leaked yesterday. VTB Bank is the second largest bank in Russia.

Russia’s largest banks, Sberbank and Gazprombank, are not included in the exclusion list, as they are still important for gas payments. Both banks were already subject to US restrictions. European bank branches of Sberbank in Austria, Croatia and Slovenia were closed and sold following EU sanctions.

According to the Commission, about 80% of Russian banks are affected by various financial sanctions, some of which were imposed after the capture of Crimea in 2014. Without seven banks, a quarter of the Russian banking sector will be affected.

The commission said closing Swift’s banks was preferable to trading quarantines as it affected all Russians, financial sanctions and war-related banks in Ukraine.

paralyzing

According to Klaas Knot of De Nederlandsche Bank, Swift’s departure is a serious sanction that has paralyzed the financial situation in Russia, but it has little impact on the financial market outside Russia.

According to the EC, the list of sanctioned banks is continuously updated and possibly supplemented. Some Member States believe that other banks should be added and Belarusian banks should also be sanctioned.

Swift is the international financial messaging service that connects banks worldwide for financial transactions. Half of the international payment traffic goes through Swift.

stock drama

The Moscow stock exchange has been closed since Friday, after a dramatic trading day on the day of the raid. The Moscow index later lost almost 40%, with large price losses in banking and industrial stocks.

On the other hand, some Russian stocks are still traded in foreign markets and the price has completely collapsed. Shares of major bank Sberbank fell 85%, oil and gas company Gazprom 83% and oil giant Rosneft 64% on the London Stock Exchange.

Source: NOS

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