Ukraine Invasion: In Latest Sanctions, Russia Cut Off From SWIFT Banking System

The sanctions will limit the ability of the Russian Central bank to support their currency.

Russia invaded Ukraine and faced sanctions.

(Photo: Altered by The Quint)

In an attempt to mount greater pressure on Russia – which has declared an all-out war against Ukraine – Germany and its western allies have decided to disconnect Russia from the SWIFT global payment system, reported news agency Reuters.

According to the report, the latest sanctions carry the approval of the United States, France, Canada, Italy, Great Britain, and the European Commission.

The sanctions, it is being reported, will also reduce the "ability" of the Russian Central bank to support rouble – the Russian currency.

According to a spokesperson quoted by Reuters, the decision to snap Russia out of SWIFT will bring an end to golden passports for well-off Russians, while also targeting institutions and individuals supporting Russia in the war.

The unnamed spokesperson also added that the western powers were willing to take "further measures" if Russia doesn't "end its attack on Ukraine and thus on the European peace order."

Singapore, South Korea Join West In Imposing Sanction

Singapore and South Korea joined the West in imposing sanctions on Russia on Monday, 28 February, as per a report by Al-Jazeera.

South Korea is expected to ban the exports of strategic items and block some Russian banks from the SWIFT payment system like the West, a statement issued by its foreign ministry said.

Singapore said that it would apply 'sanctions and restrictions' on the export of items that could be used as weapons against Ukraine.

The sanctions imposed by United Stated and Britain on the financial firms and banks of Russia so far are being seen as a move to throw out their assets from the local financial markets.

US banks were expected to break their ties with the largest Russian lender Sberbank within 30 days as per reports by Reuters, thereby blocking all the transactions between the two entities.

Britain, on the other hand, debarred Russian sovereign debt sales in London. Russia has, since 2020, issued 4.1 billion pounds worth of sovereign debt in London. Americans too will not be allowed to invest in Russian sovereign debt in the secondary markets from March 1.

The Russian wealthy have also come in the line of fire of the US and Britain sanctions, with the latter freezing the assets and banning travel of close to 100 Russian individuals.

A law to cap the deposit Russian nationals can make in their accounts is also under consideration in Britain.

Earlier on Thursday, 24 February, the US commercial department had said that it would put restraints on the export of semiconductors, computers, telecommunications, information security equipment, lasers, and sensors that it needs to sustain its military capabilities, as per the Reuters report.

(With inputs from Reuters and Al Jazeera.)