EU Disconnects Seven Russian Banks from SWIFT Network

The European Union has agreed to exclude key Russian banks from the SWIFT system, the world's dominant financial messaging system.

This measure will stop these banks from conducting their financial transactions worldwide in a fast and efficient manner. The decision has been closely coordinated with the EU's international partners, such as the United States and the United Kingdom.

President von der Leyen said:"At the speed of light, the European Union has adopted three waves of heavy sanctions against Russia's financial system, its high-tech industries and its corrupt elite. This is the largest sanctions package in our Union's history. Today's decision to disconnect key Russian banks from the SWIFT network will send yet another very clear signal to Putin and the Kremlin."

These blacklisted banks are Russia's second-largest lender VTB, Bank Otkritie, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank, and VEB.

It will take effect as of 12 March 2022. This will give SWIFT and other operators a brief transition period to implement the measure, thereby mitigating any possible negative impacts for EU businesses and financial markets. Depending on Russia's behaviour, the Commission is prepared to add further Russian banks at short notice.

In addition, the EU has prohibited investing in projects co-financed by the Russian Direct Investment Fund. The provision of euro-denominated banknotes to Russia has also been prohibited.