Italy, which previously did not support a SWIFT ban from Russia, spoke on Saturday openly supports for a boycott if the rest of the country bloc agrees.
Consequences of boycott on the table
In a phone call on Saturday, Italian Prime Minister Mario Draghi told Ukrainian President Volodimir Zelensky that he is fully behind the EU’s line on sanctions, “including those within the SWIFT framework,” according to a statement from Rome. Lithuanian Prime Minister Ingrida Simonyte said there is no longer “strong opposition” to the proposal.
EU finance ministers are meeting in Paris to discuss, among other things, the consequences of the situation in Ukraine for the European economy. The European Central Bank (ECB) and the European Commission are currently assessing the impact of such a measure on the domestic economy so that Member States can decide on the measure.
Earlier we made this explainer video about the SWIFT system:
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To ban Moscow from the system, the unanimity of the 27 EU countries is required. Germany does not rule out a Russian ban, but expressed reservations about the measure.
Russian gas supplies at risk
Throwing the country out of the alliance of banks would make it a lot more difficult for ‘ordinary’ people to transfer money to relatives in Russia. European businesses would also suffer as payments from customers or payments to suppliers would become more complex. Deliveries of Russian gas to Europe could also be endangered.
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The first two EU sanctions packages have not prevented Russian President Vladimir Putin from continuing his military actions against Ukraine. Therefore, the country bloc is now working on a third package that may also include the SWIFT boycott.
No reservations
SWIFT, which sends secure messages between more than 11,000 financial institutions and companies, is critical to the global financial system. Failure to access the system can cause significant economic damage.
French Finance Minister Bruno Le Maire previously said France had no reservations about denying Russia access to SWIFT. Dutch minister Sigrid Kaag also said that a SWIFT ban is on the table as an option.
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