13 February 2016

UK to press for Russian expulsion from Swift

01 September 2014  |  11634 views  |  0 Moscow, Russia

The British government is urging EU nations to expel Russian banks from the Swift financial messaging network, as tensions grow over the escalating crisis in Ukraine.

A weekend report from Bloomberg says that UK prime minister David Cameron pushed for a motion on Russian access to Swift at a meeting of EU leaders in Brussels on Saturday.

Citing an anonymous 'government official', Bloomberg says the UK planned to sound out EU leaders on the possibility of blocking Russian access to Swift under an expansion of sanctions over the conflict in Ukraine.

Similar restrictions were imposed on Iran in 2012, when the European Council sought to choke off the supply of funds for the country's nuclear energy programme.

The exclusion of Russian banks from the Swift network would have wider-ranging repercussions, with serious consequences for international trade flows and transaction banking operations.

Russia's government has already drafted a bill to create a new Russian system for domestic bank transfers, Deputy Finance Minister Alexey Moiseev told the Itar-Tass news service late last week.

Attempts by Western powers to disrupt payments flows to Russian businesses through the credit card networks have already created big problems for Visa and MasterCard. Incensed by the interference, Russian president Putin responded with plans to build a competitive payment network and introduced a new law requiring the US card giants to deposit billions of dollars of collateral with the central bank.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

28 August, 2014
02 July, 2014
17 June, 2014
04 June, 2014
27 March, 2014
15 March, 2012

Related company news

 

Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
16013 views comments | 102 tweets | 89 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
8893 views comments | 29 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
8500 views comments | 35 tweets | 9 linkedin
Is Paym a failure?Is Paym a failure?
7092 views 16 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6496 views comments | 17 tweets | 28 linkedin

Featured job

£100,000 basic, £180,000 OTE + Benefits
London

Find your next job