As a result of Russia’s invasion of Ukraine, sanctions have been imposed on the country, as well as proposals to exclude it from the SWIFT global payment system.
On Saturday, Ukrainian President Volodymyr Zelensky asked Germany and Hungary to support cutting Russia off from the SWIFT banking system as retaliation for Moscow’s invasion of his nation.
“The EU nations are practically unanimous in their support for cutting Russia off from SWIFT. I hope Germany and Hungary will stand firm in their support for this decision. In an online video address, Zelensky remarked, “There is already almost full support from the EU countries to disconnect Russia from SWIFT. I hope that Germany and Hungary will have the courage to support this decision.”
Earlier this, on Friday, Germany’s Finance Minister indicated that the government is ready to cut Russia off from SWIFT, but that it must first assess the economic implications. Canada’s Prime Minister Justin Trudeau also backed Russia’s exclusion from the system.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global financial transfer system’s backbone. More than 11,000 financial institutions and enterprises in almost 200 countries use the network to exchange encrypted information regarding money transfers and other operations. It is also used to transmit trillions of dollars every year.
The ban might jeopardise Russia’s capacity to trade with the rest of the world, as well as wreak havoc on its economy. However, it is possible that it will have an influence on India and other countries.
