Russia: importance of sanctions and expulsion from the SWIFT system

Russia has been under constant threats and sanctions from the European Union and the United States, thanks to its decision to take Ukraine by force. One of the strongest sanctions is the exit from the SWIFT financial system.

As we know, Russia has an exemplary military force worldwide and its reconnaissance tactics even more so. However, they failed to recognize that they are not only going against Ukraine by invading its territory, but they are also against the whole world.

The sanctions established by different important entities on the globe range from the sale of some of its best-selling products, such as the famous vodka, to the closure of air spaces and the export of technology for oil refining to the Russian country.

It should be noted that these sanctions have been very crucial for the Nordic country and that it has eventually led to the devaluation of the ruble.

But what more sanctions could the European Union take against Russia?

One of the most significant has been the complete expulsion of Russia from the SWIFT financial system. This has led the Kremlin to execute treaties that were already discussed at its round table. But what are those treaties to evade such a valuable sanction?

The sanctions, as we know, start only from the fact that Russia sees Ukraine as a country that can destabilize the harmony of the Russian country. As we know in recent weeks, it has been possible to see how troops of the Russian army have taken several key cities in Ukraine by force.

Digital news and relevant newspapers around the world report the great operation that Russia has done to "Liberate" the Ukrainian people with its incessant bombing.

Therefore, the sanctions have not only been with the Russian leadership, which insists on taking Ukraine and "liberating" it from a technically non-existent yoke for the world, but for the Kremlin in its imagination it is more than existing, it is completely palpable.

Its political leader, Vladimir Putin, exclaimed before a major television network: "The attack was mandatory, there was no other option." The Russian president later explained that Ukraine was being manipulated and financed to break up the Kremlin.

That is why the only way for Russia to do things “as they are”, is to invade Ukraine and come up with a strategic plan that includes a territorial and psychological siege, so that its president specifically goes into some kind of treaty with Russia.

It would basically be a manipulable state of Russia like other nations, considered "Separatists" thanks to the logistical intervention of the Russian state, in order to "liberate" the areas that the Kremlin is most interested in.

Sanctions begin and goodbye to SWIFT system

Taking into account all this political/military process, the only way to attack and not cause civil and structural damage (physically speaking) would be economic sanctions.

Which would destabilize the Russian state in such a way that they would be forced to make a peace treaty so that Ukraine would not be affected in any way by them.

And it is that the most significant sanction and the one that has hurt the Kremlin the most is the expulsion from the financial system of the SWIFT world. A rather delicate position for the Russian state, since this makes the Nordic country completely isolated from the other continents.

In addition, that television networks such as: "RT" have been censored both on the internet and on television.

It is important to know the following: more than a sanction, it would be an economic blockade. Because of the fact that both Russia and China have been forced to create a completely different financial system.

The blow that has been forceful

The United States, Canada and the European Union have decreed that at least 5 key Russian banks have been completely excluded from the rest of humanity.

This caused the economic floor of the great Russian power to tremble and fracture. Its 5 most relevant banks would be non-existent before any company or person that needed it.

In addition, they insisted that they would stop taking Russia into account if it needed any financing and prohibit the Kremlin from having negotiations with other banks outside theirs.

This suggests that at least 80% of Russian banks and Russia's capitalization has since been stagnant, a fatal blow to the manipulation of the ruble inside and outside its territory.

This would make any other country that wants to supply it with weapons, food and/or services technically impossible, unless Russia finds a way to evade its actions before the European Union and the countries inside and outside it.

That is why "Swift", which stands for: Society for Worldwide Interbank Financial Telecommunications, is an entity that houses no more and no less than 10,000 banks worldwide and that this type of international system was housed in the Russian country.

Since the form of security of this system operates a transaction and thanks to the validation of this operation, the Swift system gives 8 or 10 digits with which it verifies and announces that the transaction is completely secure worldwide.

A move to support the expulsion of SWIFT

But clearly the kremlin already knew that move and that is why in 2014, the Russian state created its own: “Swift”, better known as “SPFS” which its acronym in Spanish means: Financial Message Transfer System. They host at least 430 banks from all over the world, a very small relevance as far as Swift is suggested.

But without a doubt it is a wonderful move on the part of the Kremlin to avoid a blow that is still hard, which without a doubt putting up with it will be a complete annoyance for the Russian state.

However, its president, Vladimir Putin, has announced and cordially invited other banks to enter his new platform, that would give SPFS an increase in operations and possibilities for other countries that are sanctioned.