The European Commission announced that it would remove several Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT messaging system). This was done to hinder Russia’s ability to make cross-border payments.
Leaders from France, Germany and Italy highlighted their common interest in protecting Ukraine from Russian aggression in a joint statement by the European Commission.
“We will hold Russia accountable and collectively ensure this war is a strategic fail for Putin.”
The EU Commission condemned the Russian president Vladimir Putin’s decision to invade Ukraine. However, it committed to taking a number of steps to isolate Russia from international financial systems.
Ursula von der Leyen, President of the EU Commission, announced five proactive steps against Russian authorities. These included the removal of an undisclosed amount of Russian banks from SWIFT’s messaging system.
We first commit to ensuring that a number of Russian banks are taken out of SWIFT.0 This will prevent them from operating around the world and effectively stop Russian exports from being imported.
— Ursula von der Leyen (@vonderleyen) February 26, 2022
The EU Commission will “paralyze Russia’s assets” and cut Russia’s SWIFT ties. This will create a financial obstacle for Russia’s central banks to liquidate their assets. The EU Commission also stated that the third measure was:
“We promise to take measures to limit the sale and transfer of citizenship, so-called golden passports. This allows wealthy Russians to become citizens of our countries and have access to our financial system.
To ensure that all sanctions are effectively implemented, the EU Commission will soon establish a transatlantic taskforce. This will primarily aim to freeze overseas assets of Russian officials, elites, and their families. The fifth measure is to improve coordination against disinformation, and other forms hybrid warfare.
Related: Crypto could be able to bypass President Biden’s ‘devastating” sanctions on Russian elites and banks: Report
A Cointelegraph report dated February 24th, highlights how Russian billionaires could use cryptocurrencies to circumvent sanctions imposed by global markets on Russia.
It is important to pay attention this afternoon to whether the sanctions will bar Russia from the SWIFT messaging network, which would effectively cut off it from nearly all international financial transactions. (Except crypto.) https://t.co/x952GNxbah
Scott Bixby (@scottbix), February 24, 2022. Wealthy individuals can hold their Bitcoin wealth to protect themselves from sanctions if their accounts are frozen.
Crypto may be the solution for wealthy individuals who want to avoid sanctions, as Russian banks are at risk of being removed from SWIFT’s international financial network. Mati Greenspan, Quantum Economics CEO and founder, said: