The European Union has initiated the process to cut off Russia from the SWIFT banking system, according to reports from European media.

“️️️ Foreign Minister Kuleba reports that the process to disconnect #Russia from #SWIFT has begun,” local media Nexta tweeted on Saturday. 

The EU, the United States, United Kingdom and Canada had rolled out sanctions on Friday, freezing foreign-held assets of Russia’s Vladimir Putin and his foreign minister, Sergei Lavrov, in light of the ongoing invasion of Ukraine. 

European leaders had decided on Friday to impose a second batch of sanctions to incapacitate the Russian economy, setting its target on banks, state-owned companies and individuals. However, it had been undecided about blocking Russia from SWIFT. 

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

Peoples Gazette had earlier reported Hungary’s support for cutting Russia off the banking network. 

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.