Europe and the US withdraw threats to cut off Russia from SWIFT payment system in case of invasion

Europe and the US withdraw threats to cut off Russia from SWIFT payment system in case of invasion to Ukraine.

Threats to exclude Russia from the international SWIFT payment system are believed to be fading among representatives from Europe and the United States.

Politicians are reportedly growing wary of the move, fearing that Russia will develop an alternative payment system, and are instead advocating economic sanctions.

German government sources told Handelsblatt yesterday that targeted economic penalties are being planned against some of Russia's largest banks.

The move comes after weeks of talks between American and European officials about a coordinated response in the event of a Russian military operation against Ukraine. Should Russia invade, the EU has previously threatened it with "massive consequences."

Politicians are concerned that Russia's exclusion from the international SWIFT system will result in "destabilisation of the financial markets in the short term" and the development of alternative payment infrastructure.

A spokeperson for the National Security Council of the US, on the other hand, has pushed back on the reports, telling Politico that "no option is off the table" when it comes to Russia.

Annalena Baerbock, the German Foreign Affairs Minister, paid a visit to Kyiv earlier this week before heading to Moscow for a "high stakes meeting" with her Russian counterpart Sergey Lavrov. She previously warned that any Russian action against Ukraine would come at a "high price... economically, politically, and strategically."

By fLEXI tEAM