Biden Said To Eye Cutting Moscow Off From SWIFT After Support Grows In Europe

Feb 26, 2022, 11:01am

CNN reported Saturday that President Joe Biden is considering kicking Russia out of the international financial-messaging system.

CNN reported that the Biden administration is considering removing Russia from the international money transfer service, as well as a harsher financial penalty against Moscow, which would be the most damaging to the Western world.

The Federal Reserve is one of the financial institutions that oversees the international messaging system that connects 11,000 financial institutions in more than 200 countries and territories.

Biden was asked why the U.S. hadn't removed Russia from SWIFT, but he said it was not the position of the rest of Europe.

On Saturday, Italy and Germany said they were in favor of the move, while a French official said European Union members were close to reaching a consensus to act.

Major U.S. banks have suggested to the U.S. government not to restrict Moscow's access to the international financial messaging service, according to a report. They warned that the measure could encourage the development of an alternative to the dollar. They said it would be difficult for Western countries to track Russia's financial transactions if it were removed from SWIFT.

Iran is the only country that has been blocked. It was cut off due to international sanctions over the country's nuclear program.

Key Background

Russia would still be able to conduct banking transactions with other countries, but it would be more labor intensive and expensive. It could have negative consequences for key trading partners of Russia, including European countries, which could have difficulties paying for the imports of Russian oil and gas.

Biden is considering whether to support removing Russia from the international money transfer service.

More European countries are cutting off Russia from the international financial system.

Wall Street Counsels Washington against kicking Russia off of the international financial organization.

What is it? This banking system could be used to punish Russia for invading Ukraine.