US & allies to remove Russian banks from SWIFT to freeze Putin's war chest

In the aftermath of the Russia Ukraine war, the United States and its allies on Saturday announced their move to remove Russian banks from the SWIFT messaging system. The move is being done to isolate Moscow financially as it continues its military operation in Ukraine. Leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States, released a joint statement to confirm the move.

In an attempt to isolate Russia amid its invasion of Ukraine, the US and its allies announced the removal of selected Russian banks from the SWIFT.

"We commit to ensuring that selected Russian banks are removed from the SWIFT messaging system. This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally," the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States, said in a joint statement.

"We commit to imposing restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions," read the statement.

The joint statement released by the White House, also said that the allies commit to take action against ‘entities facilitating the war in Ukraine and the harmful activities of the Russian government’. It said that measures to limit the sale of citizenship via ways like the golden passports, that let people connected to the Russian government become citizens of other countries and their financial systems.

The joint statement also informed the launch of a transatlantic task force to ensure the effective implementation of the financial sanctions. It said that actions will be taken to ensure sanctions and other financial and enforcement measures against Russian officials and elites close to the Putin-led Russian government. Adding that it will step up coordination against disinformation and other forms of hybrid warfare, the allies said that they “stand with the Ukrainian people in this dark hour”. 

European Commission moves to freeze Russian banks

Furthermore, President of the European Commission Ursula von der Leyen, on Saturday, said that the allies would stop Russia from “using its war chest”, by paralysing the assets of its central bank. The European Commission said that it will freeze transactions and prevent the Russian central bank from liquidating its assets. She reiterated that the removal of Russian banks from SWIFT will be ensured.

Society of Worldwide Interbank Financial Telecommunication known as SWIFT is a Belgian-based co-operative used by thousands of financial institutions in over 200 countries, including Russia. It provides a secure messaging system to facilitate cross-border money transfers.

According to the latest statement, the US and its allies will now take action on the platform against individuals and entities that facilitate the war in Ukraine initiated by the Russian government.

Image: AP