The European Union has announced the removal of Russia from the international banking network, SWIFT. This is in light of the ongoing attacks in Ukraine by Russia. 

Ursula Von Der Leyen, the President of the EU Commission, announced the sanctions in an address on Friday. 

“First, we commit to ensuring that a certain number of Russian banks are removed from SWIFT. It will stop them from operating worldwide and effectively block Russian exports and imports,” Ms Von Der Leyen said. “Second, we will paralyse the assets of Russia’s central bank. This will freeze its transactions and it will make it impossible for the Central Bank to liquidate its assets.”

Though the EU had earlier been divided on cutting Russia off SWIFT, it had decided on Friday to impose a second batch of sanctions to stifle Russia’# economy, setting its target on banks, state-owned companies and individuals. 

Peoples Gazette had earlier reported that deliberations were being made over Russia’s status in the banking system. 

France had supported cutting off Russia from the global SWIFT payment system, supporting Ukraine by supplying weapons and military equipment to Ukraine and Germany’s finance minister, Christian Lindner, said that his government was “open” to cutting Russia from Swift. 

Countries like the United States, Britain, Japan, Canada, and Australia have rolled out sanctions on Russia on top of penalties, including a move by Germany to halt a gas pipeline from Russia.

U.S. President Joe Biden had delivered measures targeting Russian banks, oligarchs and high-tech sectors, while the EU unveiled its package covering financial, energy and technological sanctions.

Though the Swift network was created and incorporated under Belgian law, in 2012 it was made to satisfy a regulation from the EU to cut Iran off from the banking system.

Cutting off Russia from the system would leave immediate and long-term damage on its economy, especially its international financial transactions, such as profits from oil and gas production. This accounts for more than 40 per cent of Russia’s revenue.