Germany Blocks EU Expansion of 'Russia SWIFT' Sanctions

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Germany is reportedly blocking the European Union's (EU) expansion of sanctions on Russia regarding the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network.

Bloomberg News reported on the 9th (local time), citing multiple diplomatic sources, that "Germany is preventing attempts to include Sberbank, Russia's largest bank, in the list of institutions to be expelled from the SWIFT payment network."

Sberbank, which holds half of Russia's personal deposits, was initially excluded from the list of banks to be removed from SWIFT in order to maintain energy-related transactions. However, as Russia intensifies its attacks on Ukraine, voices calling for expanded sanctions are growing among Central and Eastern European countries.

Earlier, Chancellor Olaf Scholz publicly stated that sanctions that could affect energy supplies should be avoided. Regarding this, Bloomberg News pointed out that "Germany's stance creates a rift among allies seeking to sanction Russia for its invasion of Ukraine."

Germany has a particularly high dependence on Russian fossil fuels in Europe. It relies on Russia for half of its natural gas and more than one-third of its oil.

Germany is also concerned about the EU's consideration of measures to block Russian ships from accessing ports. Germany and Hungary, among others, oppose the EU following the United States in banning imports of Russian oil.

European countries have a high dependence on Russian oil and natural gas. According to data from the EU Commission, Russia supplies more than 40% of the natural gas consumed by the EU. The EU imports 27% of its oil and 46% of its coal from Russia.

On the 8th, the EU Commission proposed measures to reduce dependence on Russian fossil fuels. It also pointed out that "Russian oil and coal are more likely to find substitutes than natural gas."

Bruno Le Maire, France's Minister of Finance, said, "The exclusion of some Russian banks from the SWIFT payment network blockade was agreed upon by the 27 EU member states considering the varying dependence on Russian natural gas by each country," but added, "All options are on the table."

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