The U.S. and its allies are targeting Russian’s banking system along with physical assets through SWIFT.
The Biden administration announced on Saturday they’ll hunt down the assets of sanctioned Russian oligarchs.
Some of these assets include their yachts, mansions, luxury apartments, and ability to send money to their kids in prestige colleges out west.
I’m going to break down what SWIFT is and how this is going to impact Russia’s finances below.
Welcome to Franknez.com – entrepreneur Ed Mylett recently said on Instagram to watch out for anything having to do with SWIFT. He said it was going to further escalate things.
Let’s dive right into it!
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What is SWIFT and why does it matter in Ukraine-Russia conflict?
SWIFT stands for Society for Worldwide Interbank Financial Telecommunications.
It is a global payments system used by more than 11,000 financial institutions and companies around the world, across 200 countries.
In short, it is a messaging system for money transfers between banks and institutions globally.
SWIFT essentially acts as the middleman for money transfers between a foreign sender and a receiver.
This worldwide bank system counts central banks of countries like the US, UK, Germany, France, Japan, India, China, Singapore, and others on its list.
The EU, UK, Canada, and US have pledged to remove Russia from SWIFT.
How will SWIFT ban affect Russia?
If Russia is removed from SWIFT, they would have to look for alternative options to send and receive money.
The ban would force Russia to isolate from most of the world and to sustain itself and its economy without the aid of other countries.
How does SWIFT affect Russia’s stock market?
Investors are bracing for volatility though economist Anders Aslund says the stock market and Russian bonds will collapse.
In the U.S., we can expect ongoing volatility as well.
Credit cards and other international means of payment will also cease for the Russian people.
Russian President Vladimir Putin is causing serious distress not only for Ukrainians but for his own country and people.
The strategy is to prevent Russia from further investing in war by eliminating its global financial networks.
US and European Union begin to remove Russian banks from SWIFT banking system
WASHINGTON — The U.S., European allies and Canada agreed Saturday to remove key Russian banks from the interbank messaging system, SWIFT, an extraordinary step that will sever the country from much of the global financial system.
The U.S. said this will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.
Iran was removed from SWIFT in 2014 following developments of their nuclear program.
Russia’s top 10 largest financial institutions holding nearly 80% of the banking sector’s total assets have been targeted.
World leaders are also limiting the sale of “golden passports”, also known as loopholes that have allowed wealthy Russians to become citizens in other countries.
The Biden administration said they’re going after their yachts, their luxury apartments, their money, and ability to send their kids to fancy colleges in the west.
What do you think of these restrictions?
Are they enough?
Be sure to leave a comment below.
How is the world reacting to the Ukraine invasion?
Many Russians disagree and fear for both Ukrainian and Russian lives.
There’s a lot of negative reaction towards the government’s decision in Russia.
Russians have been rushing to withdraw US dollars at ATMS these past few days as the ruble hit a record low.
Very few have been able to obtain foreign cash with many out of luck.
The world is saying no to Putin and people on social media are representing Ukraine’s flag to show their support to the Ukrainian people.
Protests have broken out in Moscow against war with Ukraine with many Russians being arrested.
Vladimir Putin has been in power for 22 years now.
A former U.S. ambassador says Putin has become increasingly unhinged and disconnected from reality.