exports of hydrocarbons denominated in U.S. "Russia is heavily reliant on SWIFT due to its . Maria Shagina, an international sanctions expert based in Helsinki, wrote last year in an article for the Carnegie Moscow Center that the impact of banning Russia from SWIFT could be as devastating as it was for Iran, which was denied access to the system in 2012 over its nuclear program. Putin implies nuclear attack if West interferes in Ukraine.Kyiv residents take shelter as fighting breaks out in streets and Russian troops close in.How would Russia be impacted if banned from SWIFT?Įxcluding Russian banks from SWIFT would restrict the country's access to financial markets around the world. "It is the most influential infrastructure we have in financial services in terms of the volume and value of money that it's being moved around the world." How reliant is Russia on SWIFT?Īccording to the Russian National Swift Association, about 300 leading banks and organizations in the country are users of SWIFT, more than half of the Russian credit organizations are represented in SWIFT, and Russia is ranked second by number of users of the platform, after the United States. "You can think of SWIFT as the backbone of the financial services sector," said Markos Zachariadis, a professor and chair in financial technology and information systems at the University of Manchester. Markos Zachariadis, University of Manchester You can think of SWIFT as the backbone of the financial services sector. It has become the principal mechanism for financing international trade. This allows banks to process high volumes of transactions at high speed. The messages are secure so that payment instructions are typically honoured without question. About half of all high-value payments that cross national borders go through its platform.ĭuration 1:15 Prime minister says Putin cannot make war and expect to benefit financially 1:15īanks that connect to the SWIFT system and establish relationships with other banks can use messages within the system to make payments, Reuters reports. The system averaged 42 million messages daily last year to enable payments. The Belgian-based co-operative is used by thousands of financial institutions in over 200 countries, including Russia, and provides a secure messaging system to facilitate cross-border money transfers. SWIFT is the acronym for the Society of Worldwide Interbank Financial Telecommunication. UPDATE: After this story was published, news broke that the U.S., U.K., Europe and Canada plan to block Russia's access to the SWIFT international banking communications platform as part of another round of sanctions against Moscow.Ĭountries around the world have placed sanctions on Russia for its invasion of Ukraine, with some also calling for Moscow to be banned from SWIFT, a banking communications platform used by financial institutions in over 200 countries.ĬBC News takes a look at SWIFT, how Russia might be impacted if removed from the important system, and why some countries are reluctant to take that step.
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