Russia’s largest bank kicked out by SWIFT in latest sanctions blow

largest bank in russia It will be removed from the SWIFT international banking system in the latest round of international sanctions announced by the European Union on Monday night.

Sberbank, which accounts for 37% of Russia’s banking sector, will no longer be allowed to use the international program – effectively cut it off From the global financial network.

SWIFT not only allows banks around the world to communicate with each other securely and efficiently, but also beneficial to Cross-border transactions worth trillions of dollars.

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A woman leaves the Moscow branch of Russia’s majority state-owned banking and financial services company Sberbank, April 7, 2022. (NATALIA KOLESNIKOVA/AFP via Getty Images/Getty Images)

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Ukrainian officials have called for Russia to ban SWIFT altogether since the war broke out, but U.S. and EU officials have been Hesitant to weaken the Russian economy by this method.

European Commission President Ursula von der Leyen called the decision a “good” move in a late-night speech on Monday, before announcing that Russia would be sanctioned in other areas.

By the end of the year, Moscow will also block nearly 90 percent of its oil exports to European countries.

“This is an important step forward,” Von der Leyen said. “We’ll get back to the remaining 10 percent soon.”

Three Russian media outlets were also targeted for “widespread” spreading misinformation about Russia’s war in Ukraine.

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Banners expressing solidarity with Ukraine can be seen in the square in front of the Russian consulate general, informally named Free Ukraine Square after the Russian aggression. March 30, 2022, Krakow, Poland. (Beata Zawrzel/NurPhoto via Getty Images/Getty Images)

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The latest round of sanctions will be the EU’s sixth package against Moscow as it seeks to undercut Russian President Vladimir Putin’s deadly campaign.

The EU presidency also pledged financial aid to Ukraine, which needs around 5 billion euros a month for wages, pensions and “essential services”.

So far, the G7 has agreed to provide $9.5 billion, with $7.5 billion from the United States and $1 billion from Germany.

“But we think, of course, the EU must also take its fair share,” von der Leyen said in a statement released Tuesday morning. “We are therefore working on a mechanism to provide an extraordinary macro-financial aid package of 9 billion euros.”

Ursula von der Leyen

European Commission President Ursula von der Leyen holds a press conference with European Council President Charles Michel in response to media questions after the EU Extraordinary Summit on May 30, 2022. (Nicholas Economou/NurPhoto via Getty Images/Getty Images)

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The EU will also seek to establish a platform to assist Ukraine’s reconstruction by combining international investments from initiatives such as the Organisation for Economic Co-operation and Development, G20, International Monetary Fund, World Bank and various international efforts.

“It’s important that we truly stand together to give Ukraine a fair chance to rise from the ashes and to be able to really leapfrog the investments involved in rebuilding, as well as improving the situation in Ukraine,” von der Leyen said.