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info@example.com What is the Swift system?
The Swift communication system is a secure message system. It is used by banks to notify other banks of the status of transactions between them.
What would be the effect of banning Russian banks from using the swift system?
To illustrate the importance of the Swift system to world banking, the removal of all Russian banks from the Swift system has been highlighted as the second of two main sanctions that can be made against Russia for the invasion of Ukraine. Removal of Russian banks from the Swift system would cause a total inability for Russian banks to transact internationally.
The reason many western European governments are against this is that if Russia was removed from the Swift system, then the Russian banks would be unable to repay debts called in by the western European banks. Energy products such as gas and oil also are often transacted via the Swift System. However not removing Russia from the swift system allows them to move money more freely.
