Russian MFA deems SWIFT involvement into “sanction spiral” possible

The SWIFT system may be involved in a “spiral of sanctions” against Russia, said Dmitry Birichevsky, Director of MFA Department of European Cooperation, in an interview with RIA Novosti. “It's no secret that there are threats, primarily coming from the United States, to disconnect Russia from the SWIFT system,” he recalled. 

At the same time, according to the international law, only a legitimate body, the UN Security Council, may impose sanctions, emphasized D. Birichevsky. Unilateral measures taken by some countries or groups of countries cannot be called sanctions, he said. In his opinion, those are rather barriers designed to protect their own manufacturers and interests on the world stage. “There are fears that the SWIFT system may be involved in this “sanction spiral”, Birichevsky said. The diplomat recalled that Russia is developing an analogue of this system against the possibility of disconnection from SWIFT. 

SWIFT is an interbank data exchange and payment system, connecting over 11 thousand major organizations in almost all countries. Western politicians regularly call for a cutoff of Russia from the system as a tougher sanction. At the end of April 2021, a group of MEPs initiated a proposal to disconnect Russia from SWIFT. 

However, it’s not that easy. According to EU foreign policy chief Josep Borrell, SWIFT is an international private entity and disconnection from it is beyond the scope of the EU competence. The Bank of Russia sees no such risks either, First Deputy Governor of the Bank of Russia Olga Skorobogatova said in her statement in mid-May.