What are the consequences of the SWIFT exclusion of Russia for German companies? What are the alternatives for payment transactions with Russia?
What are the consequences of the sanction for German companies?
After Russia’s attack on Ukraine, the United States, Germany and other Western allies responded with sweeping sanctions against Russia. Several Russian banks were excluded from the bank communication network Swift.
Many German entrepreneurs are now faced with the question of how high the collateral damage should be and how much the Russian decoupling will affect their payment transactions.
What is Swift? What significance does it have for the financial world?
Swift is the abbreviation for Society for Worldwide Interbank Financial Telecommunicationan international Belgian organization that facilitates communication between banks and financial institutions around the world.
The Swift network enables individuals, businesses and countries to make international transfers in one unified system. This facilitates general payment transactions and greatly promotes global trade.
These options are severely limited given the conflict between Russia and Ukraine. The consequences of these restrictions for German companies are examined in detail below.
What are the consequences of the Swift exclusion for German companies?
The exclusion of Russian financial institutions from Swift represents a very far-reaching response by Western countries to the Russian-Ukrainian conflict. It may lead to a significant restriction in trade between Russia and the West.
This is reflected in the fact that Swift provides the infrastructure that enables financial institutions to communicate securely in international payment transactions. As a result of Russia’s exclusion from Swift, those affected are effectively decoupled from the international financial system. It is used by countless banks, large companies and investment firms in more than 200 countries.
The decoupling of Russian institutes has many negative consequences for Germany, since over time companies will no longer be able to pay for imports or post income for exports.
What options do German companies have to best prevent the consequences of the Swift exclusion?
In order to prevent the negative consequences of the Swift exclusion as best as possible, German entrepreneurs are recommended to identify any business relationships with banks that are subject to the sanctions and to refrain from making payments with them. Corporate accounts should also be transferred to an unsanctioned bank. The new account details should ultimately be adjusted accordingly in the contracts and communicated to the suppliers and customers.
Are you an entrepreneur and need help with the consequences of the Russia-Ukraine conflict?
If you are an entrepreneur and are affected by the consequences of the sanctions in the Russia-Ukraine conflict, we would be happy to support you with our expertise. You can also confidentially contact the following address for a preliminary inquiry: [email protected]
The information contained in this article is for general information purposes and therefore does not constitute legal or economic advice. In individual cases, the content of this article cannot replace individual advice from competent persons.
In addition, the topic of the article is very dynamic due to its topicality, so that the content is subject to constant changes.
swell
Swift: Russia is excluded from the payment system, the central bank is also targeted (rp-online.de)
SWIFT: Russia would use other options after decoupling – russia.CAPITAL
https://rechtsanwaltkaufmann.de/bank-und-kapitalmarktrecht/russland-swift-ausschluss-der-banken-folgen-und-alternativen-fuer-unternehmen
–
