The EU excludes seven Russian banks, including the second largest bank VTB, from the international settlement system SWIFT and gives them 10 days to complete transactions opened in SWIFT, Reuters reports citing the Official Journal of the European Union.
According to Reuters, the European Union has decided to exclude seven Russian banks from the international settlement system SWIFT.
Not all Russian banks will have 10 days to complete transactions opened in SWIFT.
As reported, Russia’s largest bank Sberbank and Gazprombank were not included in the list of excluded banks, as they are used to pay for Russian oil and gas, which continue to be bought by EU member states, despite Russia’s attack on Ukraine.
The SWIFT system is an international interbank network for the exchange of information on foreign payment orders. Its center is located in Brussels and is subject to EU law.
The bank equivalent of an email is sent through it. The system offers the possibility of sending standardized information about transactions between exporters and importers.
The purpose of its existence is to reduce lead times and automate translations. The role of the SWIFT system is purely informational in nature – it does not carry out settlements on monetary transactions.