June 9, 2023


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Three questions about the Swift organization, which has been touted as a deadly weapon against Russia

What are the sanctions after Russia’s invasion of Ukraine? On Thursday, February 24, the Ukrainian president called on the international community to exclude Russia from the Swift interbank messaging system, which is seen as a dangerous weapon against the Russian economy. “We demand the withdrawal of Russia from Swift and the introduction of a no-fly zone over Ukraine.”, Volodymir Zelensky said after a phone interview with Emmanuel Macron on Twitter. His American colleague, Joe Biden, felt it was intact “An Option” Moscow should be allowed. However he pointed out“Currently it is not (a) status” Europeans shared

>> The war in Ukraine: Follow the latest information about the Russian attack on our live

FranceInfo explains what this essential coke has in the global fund.

1What is Swift?

Swift stands for Society for Worldwide Interbank Financial Telecommunication. The co-operative society is located in La Houlbay, Brussels, Belgium. It was established in 1973 by the world’s leading banks. It’s an intermediary, the principle of which is simple: an automated messaging system that transforms telex and writes and sends payment orders between various banks across the planet. Swift does not hold or transfer funds, but allows banks to report transactions involving them. Joining today More than 11,000 companies*, Is present in more than 200 countries. In 2021, it sent an average of 42 million messages a day.

2What will be the consequences for Russia?

The international community has already banned a country from using Swift. In 2012, the company expelled 30 Iranian companies, including its central bank, in line with EU sanctions against the Islamic Republic and its nuclear program. After the Iranian nuclear deal signed in 2015, Tehran was reunited with the organization and then severed again in 2018 when the United States imposed new sanctions under Donald Trump.

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According to Carnegie Moscow Center*, Iran has lost nearly half of its oil export earnings and 30% of its foreign trade as a result of this severance. This Moscow-based international think tank will have an impact on the Russian economy “Equally destructive” : “Russia is heavily dependent on Swift because of its billions of dollars in hydrocarbon exports.”

Russian banks may lag behind in the national body for banking transactions in the country. However, internationally they will have great difficulties. “Economic impact will be serious and immediate”An American diplomat was plentiful in December The world. In 2014, when the threat of the embargo was stamped after the invasion of Crimea, the then Russian Finance Minister estimated the impact of such a move at 5% of Russia’s GDP.

Russian officials are minimizing the potential impact. “Yes, it’s very hard, it’s obvious, but it’s not going to be a disaster., Promised by former President Dmitry Medvedev. Nearby New York Times*An expert in Russia, believes Maria Snegovaya “Russia will not suffer as much as the West thinks”.

What is the risk to the world economy?

The problem with the international community is that Russia is not the only country affected by the embargo. “The Russian economy is a completely different story. It’s twice as big as any economy already allowed by the United States.”Analysis with New York Times*Adam Smith, former finance minister of Barack Obama.

France, for example, has many economic interests in the country. Recalled by National Treasury Department, France is the second largest foreign investor and largest foreign investor in Russia, with 160,000 employees of French companies. Rosebank is one of the Society’s major Russian banks.

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In recent days, Russia has warned the international community of a setback. “If Russia is disconnected, we will not receive foreign tariffs, but our buyers, primarily European countries, will not receive our goods: oil, gas, metals and other imported goods.”Warned in an interview with TASS Company* Senator Nikolai Zhuravlev. This will lead to higher energy prices in Europe.

* All links following the asterisk are in English.