'SWIFT Expulsion List' Released... EU Imposes Sanctions on 7 Russian Banks (Comprehensive)

On the 28th, an employee is organizing Russian currency, the ruble, at the Counterfeit Response Center of Hana Bank Headquarters in Euljiro, Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Song Seung-seop] Russia, which invaded Ukraine, has been subjected to exclusion from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), known as the "financial nuclear bomb."

According to major foreign media including AFP on the 2nd, the European Union (EU) has implemented sanctions to expel major Russian banks from SWIFT. The targets are seven banks: VTB Bank, Bank Rossiya, Bank Otkritie, Novikombank, Sovcombank, Promsvyazbank, and VEB. VTB Bank is a Russian state-owned bank and is considered the second largest bank in Russia.

SWIFT is a communication network used by over 11,000 banks in more than 200 countries for international financial transactions. Being excluded from SWIFT makes most financial transactions such as international remittances, investments, and currency exchanges difficult.

However, Russia's largest bank, Sberbank, and Gazprombank were excluded from this sanction. AFP interpreted this as being left out to facilitate payments for EU member states' purchases of Russian natural gas and crude oil.

The European Commission judged that this measure would quickly and efficiently halt Russian banks' global financial transactions. It also stated that the measure was coordinated with the United States, the United Kingdom, and other EU allies.

Ursula von der Leyen, President of the European Commission, said, "The EU has adopted heavy sanctions on the Russian financial system, advanced industries, and corrupt elites," adding, "Today's decision to block key Russian banks from the SWIFT payment network will send a clear signal to Putin and the Kremlin once again."

This content was produced with the assistance of AI translation services.