British "Sky" news network on the 27th, Ukrainian Prime Minister Janis Shmigar said that Ukraine thanks the United States, France and other countries for the latest round of financial sanctions imposed on Russia.
Screenshot of the "Sky" news network report
Shmigar said on Twitter that "thank you to our friends" is the latest round of financial sanctions imposed on Russia by the United States, France, Germany, Italy, Canada and the United Kingdom.
Screenshot of Shmigal Tweet
Shortly before that, the leaders of the United States, the European Commission, France, Germany, Italy, the United Kingdom, and Canada said in a joint statement, "We guarantee that the selected Russian banks will be excluded from the SWIFT (Global Interbank Financial Telecommunication Association) international settlement system." Such an initiative would ensure that these banks are disconnected from the international financial system and undermine their ability to operate internationally. ”
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Why is this so called "dropping a 'financial nuclear bomb' on Russia"?
The "Global Banking Financial Telecommunication Association" was founded in 1973 and is headquartered in Belgium.
At present, the "WorldWide Banking Financial Telecommunication Association" has created the world's safest, most convenient and most important cross-border payment system, and almost all major financial institutions in the world are members of this system.
In general, cross-border transfers between banks in different countries require payment through the "Global Banking Financial Telecommunication Association" payment system, so the system also substantially controls most international trade. If removed from the system, it would not be able to settle in U.S. dollars, but would have to trade in its own currency or with other countries that had signed currency swaps.
In 2012, the United States and Europe upgraded financial sanctions against Iran and removed four important Iranian banks from the "Global Bank financial telecommunication association" system, resulting in Iran losing nearly half of its oil export earnings.
At present, the "Association for Worldwide Banking Financial Telecommunication" system has about 11,000 members, including nearly 300 Russian banks. If these Russian banks are removed from the system, the proceeds from oil and gas exports, which account for more than 40 percent of Russia's total fiscal revenue, will be cut off and their economies will be immediately and significantly affected, including large fluctuations in the national currency and the flight of large amounts of capital.
Therefore, the removal of Russia from the "Global Banking Financial Telecommunication Association" system is also known as the "financial nuclear bomb" dropped on Russia.
In response to this threat, the Central Bank of Russia has developed a homegrown settlement system since 2014 and put it into operation in 2019 – although only 8 foreign banks are currently involved, which means that Russian banks are still highly dependent on the "Global Banking Financial Telecommunication Association" system.
Source: World Wide Web