Financial sanctions against Russia continue

Russia’s attacks on Ukraine continue rapidly. Europe and America are on Ukraine’s side. While Ukraine is supported both politically and militarily, economic sanctions are applied to Russia.

Ukraine-Russia War

Tensions lasting for years gave way to conflicts. The two countries are at war. In order to stop Russia’s occupation policy, the European Union and the United States of America have taken various sanctions decisions. Undoubtedly, the most effective of these decisions was the Swift decision. You know, Swift is the name of the money transfer organization that ensures the safe implementation of international trade. Russia’s Exports will suffer severely from Swift’s extraction. In addition to this decision, various sanction decisions were announced for the Russian Sberbank. Sberbank, which had a difficult time due to the suspension of financial transactions, decided to stop its organization in Europe.

What is the SWIFT

Swift code is used in transactions that provide an electronic fund transfer standard between banks. The Swift system was established in 1973 and actually started working in 1977.

Swift consists of an 8 or 11 digit code indicating the bank. Swift codes are standard in the entire world banking system. The Swift code is the international code that enables transfers to banks’ foreign currency accounts. All banks have a special Swift code for their use. Swift Code; It consists of 11 digits and all capital letters.

The removal of a country from SWIFT means that key banks will be largely cut off from the global financial system. After Moscow’s exclusion from SWIFT, Russian banks will seek alternative ways to securely communicate with banks in other countries.

Prohibition of Swift, which creates a secure payment system in international trade, will slow down Russia’s exports. Because Russian businesses and banks will carry out money transfers more slowly, so the agreements may be canceled.

Sberbank terminates its operations in Europe

Sberbank, one of the largest banks in Russia, ended its activities in Europe due to increasing sanctions pressure. Expressing this as just the beginning, experts say that the end of many Russian companies will be the same. The steps taken against Russia due to the Ukraine attack put Putin in a difficult position. however, it seems that he will not give up on this strategy in a short time. If the war continues, the Russian economy may become inextricable.

A blow to Russian maritime trade

Russian ships could not find a port to dock. European sanctions are increasing rapidly. NATO is trying to stop Russia with sanctions. Finally, Russian ships were banned from entering ports in British territorial waters. Bodrum will negatively affect the Russian economy. If the issue is not resolved soon, the trade may be locked.

Leave a Reply

Your email address will not be published.