Market Extra: ‘Selected’ Russian banks to be removed from SWIFT global banking network, as sanctions against Moscow grow: reports

The White House on Saturday said that the U.S., EU, and U.K., have pledged to remove ‘selected’ Russian banks from the SWIFT, interbank messaging network, increasing the sanctions on Moscow in the third day of its unprovoked invasion of Ukraine, according to the Associated Press.

CNBC also reported that Canada agreed to remove Russia from the interbank messaging system, SWIFT.

Last week, President Joe Biden had said that SWIFT remained an option but suggested there were some European resistance to Russia’s removal from the network, when asked by reporters following his Thursday speech.

On Saturday, a joint letter of written by the global powers indicated that Russia’s removal “would ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.”

 SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a payments-related messaging service based on Belgium that helps banks world-wide execute financial transactions.

The Wall Street Journal reported that momentum from the European Union grew on cutting Russia out of SWIFT, after other measures imposed by Western countries appeared to have little effect in persuading President Vladimir Putin from halting Moscow’s invasion of Ukraine.

Some have worried that removing Russia from SWIFT could create economic problems among the many other countries that use the important payment messaging network.

—with Associated Press

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