The crisis in Ukraine has escalated to a full-scale invasion ordered by Russian President Vladimir Putin.
It is has led to one of the most significant conflicts in Europe since the end of World War Two, with world leaders – including Boris Johnson – imposing sanctions on Russia following the order from Moscow.
One promise the Prime Minister made was to work with other countries to limit Russian access to the Swift payment system, which will require the be done in conjunction with G7 and Nato allies.
But what exactly is Swift, and how would a limitation affect Russia’ economy?
What is Swift?
Swift stands for the Society for Worldwide Interbank Financial Telecommunication – and is a cooperative of financial institutions formed in 1973.
It is based in Belgium and is overseen by the National Bank of Belgium, with cooperation from the likes of the U.S. Federal Reserve System, the Bank of England and the European Central Bank.
Swift isn’t a bank, nor does it transfer funds. It is a messaging system that links together more than 11,000 financial institutions in over 200 countries and territories, alerting banks when transactions are going to occur.
In 2021, Swift recorded an average of 42 million messages per day, an 11% increase from the year before. In 2020, Russia accounted for 1.5% of all transactions.
What would a ban mean for Russia?
A ban would cut Russia off from most international financial transactions, including its profits from oil and gas production which accounts for more than 40% of Russia’s revenue.
A ban on Swift would impact the Russian economy quickly and effectively as it would be harder for Russia to move money and trade with other countries.
The UK and US had considered banning Russia from Swift back in 2014, when it annexed Crimea and backed separatist forces in eastern Ukraine, but Swift refused to disconnect Russian banks from its network.
Following the order from Moscow to invade Ukraine, there are more calls for Western leaders to impose tougher sanctions but it remains to be seen if a ban will go ahead.
MORE : Live interactive map shows where Russia is attacking Ukraine
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Russia/Ukraine invasion: all you need to know
Russian forces have launched an attack on Ukraine, with swathes of the country – including capital city Kyiv, bring hit by rocket strikes.
Troops from Russia crossed the Crimea border into Ukraine in the early hours of February 24 after President Vladimir Putin gave the order for his invasion to begin.
Boris Johnson launched a scathing attack on the Russian leader as he unveiled a package of sanctions against the country, saying said Putin ‘will never be able to cleanse the blood of Ukraine from his hands’ and will be ‘condemned’ in the eyes of history.
He said President Vladimir Putin’s regime would be condemned to ‘pariah status’ after unleashing its ‘tidal wave of violence’ against its western neighbour.
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