Finance & Economics

Russia may be cut off from SWIFT banking payment system

This is part of the restrictions against Moscow

Russia SWIFT

Russia may be cut off from SWIFT banking payment system. Source: flickr.com

Russia-based financial institutions could be blocked from using SWIFT, according to RT.com.

The restrictions, although unlikely to happen soon, could lead to several sanctions led by Washington. However, Russia could coin payment agreements with partners. Russia has been putting efforts towards its payment system since 2014.

The country utilizes the MIR card. The card is also largely accepted in Turkey as well as other neighbouring countries. The parties involved are in the middle of negotiations.

Since 2014, Russia has been working on its own payment system. This system already exists. We all use the MIR card. It is also accepted in a number of neighboring countries and in Turkey. Negotiations are also underway with other partners
Dmitry Birichevsky, director of the Economic Cooperation Department of the Russian Foreign Ministry

A vote condemning Russia’s military positioning close to its border with Ukraine was passed in March 2021. The MEPs agreed to exclude Moscow from SWIFT if the military placement caused an invasion.

Other economic measures were also set. And now, Russia is in a position where losing SWIFT will have zero impacts on its payment systems. The country has an alternative, SPFS. While it works domestically, it could soon be expanded to international markets.

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