The system is not a payment, only recording the performance of banking operations. However, the international interbank information transmission system is an important organization in the economic and political development of countries.
Russia is now virtually an outlaw for SWIFT. If in 2014, following the annexation of Crimea and its annexation to the Russian Federation, SWIFT refused to turn off Russian banks and issued a special statement demanding to stop any separate calls to turn off banks, then in 2022, SWIFT does not stay away.
On 14 June, information on the final approval of the six sanctions package was released. As part of the new restrictions, the SWIFT system is being disconnected from three other banks significant for Russia. Among the Russian "outlaws" are now:
- Sberbank;
- Russian agricultural bank;
- Moscow credit bank.
Such a step entails three main problems for Russia:
- The increased cost of interbank services;
- Slowing down of operations;
- Loss of reputation.
Of course, the banks will continue to operate. But all financial flows will be slowed down. This is a blow to Russia's global trade, international technology, and export chains. But Russian propaganda continues to assure its people of the situation's stability.
"Bank representatives still claim that the disconnection from SWIFT will not affect their work much," says several Russian media.
But we note that since June 14, the largest universal bank of Russia and Eastern Europe has been disconnected from the SWIFT system. This cannot only affect the financial health of the country and individuals.
Note that previously only banks of Iran and North Korea were disconnected from the payment system SWIFT.
