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What is Swift and what are their sanctions?
THE US and Nato allies have threatened Russia with Swift sanctions.
President Joe Biden announced new sanctions against Russia following Vladimir Putin's decision to invade Ukraine on February 22, 2022. So, what are they and will they make a difference?
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What is Swift?
The Society of Worldwide Interbank Financial Telecommunication, also known as Swift, is an international payment system and messaging network that transmits information used for transactions across the world.
, which is headquartered in Belgium, helps goods and services move across greater distances at fast speed.
Countries need the system in order to receive payments from the global community as it is connected to over 11,000 financial institutions around the world.
What are Swift sanctions?
If a sanction is put into place then that means that the country in question would not have access to the system, essentially hurting their financial system and economy.
Treasury Secretary Janet Yellen told "Treasury is taking serious and unprecedented action to deliver swift and severe consequences to the Kremlin and significantly impair their ability to use the Russian economy and financial system to further their malign activity."
Will a Swift sanction be placed on Russia?
In order to pass a Swift sanction, Biden would need support from the other members of Europe.
At this time, it remains unclear if a Swift sanction will be placed on Russia after the President alluded that others don't seem to be on board yet during his February 24, 2022, press conference.
"It is always an option," Biden said at the time, "but right now it's not the position that the rest of Europe wishes to take."
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Biden says new restrictions would include further cutting off Russia's major financial institutions from US assistance and will focus other financial restrictions on Putin's inner circle.
He announced he is implementing more sanctions that the US and other Nato alliances have designed to have the "maximum long-term impact on Russia".
He said 27 countries in total are working together to "amplify a joint impact response."
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