The European Union has disconnected seven Russian banks from the international interbank system SWIFT. The list includes the following banks:
- VTB;
- VEB;
- Promsvyazbank;
- Sovcombank;
- Russia;
- Opening;
- Novikombank.
Within ten days they must cease their operations within this system. The disconnection of said banks from SWIFT will take effect on the tenth day following the publication of the decision in the Official Journal of the EU.
It will apply to any legal entities, organizations or bodies registered in Russia, whose property rights directly or indirectly belong to more than 50% of these banks.
In addition, the Council of the EU prohibited investing in, participating in or otherwise contributing to future projects co-financed by the Russian Direct Investment Fund.
The sale, supply, transfer or export of euro banknotes to Russia , to any individual, legal entity, organization, body in Russia, including the government and the Central Bank of the Russian Federation, or for use in Russia, was also banned .
The SWIFT system is an international system that allows banks in different countries to quickly exchange information and make payments.
This is a convenient way to make a money transfer abroad from your account to the account of an individual or legal entity. This form of payment is ideal for paying for overseas purchases, booking hotel rooms, paying for tuition, holidays or medical treatment, as well as for money transfers to relatives and friends.
In the event of disconnection from SWIFT, interbank payment transactions become much more complicated . According to the head of the European Commission, Ursula von der Leyen, disconnecting Russian banks from SWIFT will allow them to suspend their activities around the world and effectively block Russian exports and imports.
