Call for Swift blockade
Lithuanians demonstrate in front of the German Embassy
2/26/2022 3:29 p.m
A ban from the Swift financial network is considered the ultimate sanction, which would effectively exclude Russia from global payments. So far it has not been said, because Germany in particular is reluctant. But the criticism of the federal government because of this is getting louder.
In Lithuania, dozens of people have protested against Germany’s no to an immediate exclusion of Russia from the banking communications network Swift. According to Lithuanian media reports, around 100 people gathered in front of the German embassy in Vilnius and expressed their displeasure with the attitude of the federal government. On posters, they urged Germany to drop its reservations about Russia’s exclusion from Swift. Meanwhile, other European governments have also declared their support for a corresponding sanction.
The step is being discussed as a consequence of the war against Ukraine. Many demonstrators wore Ukrainian and Lithuanian flags, according to images published on the Internet. The EU imposed sanctions on Russia after attacking Ukraine. The Swift exclusion of Russia is not yet included. It is considered the sharpest sword of sanctions because it would practically cut off Russian banks from the global financial system. Great Britain, for example, is one of the advocates of such a measure. According to the federal government, Germany, France and Italy also had reservations.
The federal government argues, for example, that an exclusion would have a major impact on payment transactions in Germany. Finance Minister Christian Lindner had said that further sanctions were possible, but their effects had to be considered. A Swift exclusion from Russia would also have far-reaching consequences for German companies. However, the German government is increasingly lonely in its rejection of this step. Other initially hesitant EU members have since declared their support for a Swift ban.
ECB: “A matter of days”
Italy’s Prime Minister Mario Draghi said Italy fully supports the EU’s stance on sanctions against Russia, including Swift. Draghi confirmed this in a conversation with the Ukrainian President Volodymyr Zelenskyj. Meanwhile, Ukrainian Foreign Minister Dmytro Kuleba tweeted that his French counterpart Jean-Yves Le Drian told him in a phone call that he would agree to a Swift exclusion.
Meanwhile, ECB circles said a decision to cut Russia off from Swift could be made within days. “Swift is just a matter of time, a very short time, days,” the head of a central bank in the euro zone, who asked not to be named, told Reuters. The system is used by more than 11,000 financial institutions in over 200 countries and is important for the global flow of money. However, after the annexation of Crimea, Russia developed its own alternative system called SPFS, after demands arose for the first time to disconnect Russia from Swift.