The EU leaves seven Russian banks out of the SWIFT system

The European Union on Wednesday excluded seven Russian banks from the SWIFT international financial communication system in retaliation for the military attack in Ukraine, but it maintains within the system the country’s largest bank, Sberbank, and Gazprombank, a bank partially owned by the Russian banking giant. Gas Gazprom. The affected entities are Bank Otkritie, Novikombank, Promsvyazbank, Rossiya Bank, Sovcombank, VEB and VTB Bank. The ban will take effect in 10 days and also applies to any legal person, entity or body established in Russia with direct or indirect ownership rights of more than 50% of these banks.

As reported by the Consell, these sanctions prohibit these seven banks from investing or participating in future projects co-financed by the Russian Direct Investment Fund and from buying, supplying, transferring or exporting banknotes denominated in euros in Russia or to any legal person, entity or body in the country, including the government and the Central Bank of Russia.

Community sources argue that the form of the Sberbank and Gazprombank measure, the first and third largest bank in Russia, has been left behind, because the transactions excluded from the SWIFT system cannot be differentiated by sector.

The same sources have argued the 10 days of transition to apply the measure because European banks “need time” and to mitigate the possible negative effects that the measure may have on them.

The agreement between the 27 was closed Tuesday at sunset, but the names of the affected entities have not been made public until this Wednesday. Community sources point out that more banks could be added to the list.

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