SWIFT. The United States and its allies are now considering excluding Russia from the Swift network, which is essential for the transmission of interbank information. A punchy action that could have serious consequences.
[Mis à jour le 25 février 2022 à 17h43] The proposals for economic sanctions against the Russia are now on the table. As the invasion of Ukraine by Russian troops continues, the Ukrainian President Volodymyr Zelensky called on the international community to exclude Russia from the interbank information system Swift in order to disconnect Russian banks from world trade. An idea shared by the President of the United States Joe Biden, but not yet validated by the Europeans. But then, what would be the consequences for Russia of seeing itself excluded from this network, which is as little known as it is essential? Does Europe have something to lose in this manoeuvre? The lighting of Linternaute.com.
Swift is the acronym for “Society for Worldwide Interbank Financial Telecommunication”. Created in 1973, this Belgium-based company acts as an IT intermediary between customers of different banks. In other words, it centralizes transfer orders, like secure electronic messaging between countries. Swift brings together more than 11,600 banking establishments in more than 200 countries. Last year, in 2021, the network transmitted 10.6 billion payment orders in the whole world.
The possibility of an exclusion of Russia from the Swift network could prove extremely penalizing. This would put an end to all international transactions of Russia, enough to generate a massive capital flight. The banking system would clearly be slowed down, and Russia would then have to rely on alternative secure messaging systems. An extremely heavy handicap to fit into the global economy.
As a reminder, Iranian banks were disconnected from the Swift system in 2012. Result? Half of the country’s export earnings had gone up in smoke.
Dramatic for the Russian economy, the disconnection of Swift could also turn against European countries, and France. Second foreign investor in Russia, and first employer with 160,000 employees, France ultimately has a lot to lose from such an act. Also, one of the main Russian banks, Rosbankis owned by… The Societe Generale ! Due to his many economic interests in Russia, the idea of excluding him from the Swift network is a double-edged sword for the old continent.