Some are calling it the “nuclear option.” As Western governments threaten Russia with a package of unprecedented sanctions aimed at deterring President Vladimir Putin from ordering an invasion of Ukraine, there’s one measure in particular that appears to strike fear at the heart of the Kremlin: cutting the country off from the global banking system.
US lawmakers have suggested in recent weeks that Russia could be removed from SWIFT, a high security network that connect thousands of financial institutions around the world. Senior Russian lawmakers have responded by saying that shipments of oil, gas and metals to Europe would stop if that happened.
What’s more, Russia has taken steps in recent years to blunt the trauma should it be removed from SWIFT. Moscow established its own payment system, SPFS, after it was hit by Western sanctions in 2014 following its annexation of Crimea early that year.
Finance vs. tanks: Why SWIFT might be the weapon Russia fears mostRead More
