What solutions for Russian banks following EU lockdowns?

The Russian-Ukrainian war has been going on for over a year now. And still today, Russia is serving its sentences. In particular, reference is made to the SWIFT sanctions imposed by the EU which target banks in Russia. Today, the EU spokesman said the EU will not lift or ease restrictions until the end of the conflict.

EU maintains SWIFT sanctions against Russia

Since the start of the war in Ukraine, the EU has multiplied restrictive measures against Russia. Through its spokesman Peter Stano, it has also made it known that it has no intention of lifting the SWIFT sanctions against Russian banks.

Some time ago, the Russian Federation launched petitions regarding these SWIFT sanctions. Among the requirements of the current Russian administration is the reconnection of Rosselkhozbank, the Russian agricultural bank, to SWIFT. A demand to extend the “Black Sea grain agreement”. But the EU’s decision is firm: there will be no no easing or lifting of SWIFT sanctions before the end of the invasion from Russia to Ukraine.

“EU restrictions towards Russia do not apply to trade in agricultural and food products, including wheat and fertilizers between third countries and Russia. There are always possible means of payment between them. says the EU spokesperson.

What alternative for Russia?

To open up its banking system, the country must find other means. Excluded by the EU, Russia then binds itself to Iran. In January, the central banks of Russia and Iran sign an agreement to connect their national interbank communication and transfer systems.

This agreement allows the banks of the two countries to transfer funds between them without going through the SWIFT system. On the other hand, it does not completely solve Russia’s problems (just like the adoption of cryptocurrency).

As long as it sticks to its guns, Russia will have to comply with the SWIFT sanctions imposed by the EU. SO, the standoff between the two parties continues ! To be continued…