Americas

Americas

SWIFT off Russia sanctions list, state banks likely target - U.S., EU officials

12 February 2022 13:38 (UTC +04:00)

U.S. and European officials are finalizing an extensive package of sanctions if Russia invades Ukraine that targets major Russian banks, but does not include banning Russia from the SWIFT financial system, according to U.S. and European officials, APA reports citing Reuters.

The sanctions on the table also include export controls on components produced by Russia for the tech and weapons sectors, and sanctions against specific Russian oligarchs, according to three sources familiar with the discussions.

One U.S. official said the Russian banks targeted with sanctions could include state-backed VTB and Sberbank, the largest financial institutions in Russia.

Both institutions are already subject to sectoral sanctions imposed by the Treasury Department after Russia's physical invasion of Ukraine's Crimea region that limit their ability to raise capital in the United States, but the full blocking sanctions in sight now would have far more significant consequences, said one sanctions expert.

They would likely be accompanied by certain waivers and wind-down periods to limit harm to U.S. companies and those of allies.

Three sources familiar with the talks said banning Russia entirely from the SWIFT financial transaction system was not under active consideration after running into major objections from European countries.