Largest Russian bank barred from SWIFT

Sberbank claims that its business will not be impacted by the most recent Western sanctions.

Sberbank, the largest bank in Russia, has been cut off from the SWIFT global financial messaging system as a result of fresh sanctions that the European Union's leaders passed on Monday.

Following the EU conference, Charles Michel, the head of the European Council, stated that "this sanctions package includes further hard-hitting measures: de-Shifting the major Russian bank Sberbank."

The official said that the most recent sanctions also include the closure of three state-owned Russian networks and the penalizing of people accused of war crimes in Ukraine.

According to the lender's press office, cutting off Sberbank, the largest bank in Russia by assets, from SWIFT is not anticipated to have an impact on its domestic operations because international settlements were already constrained by the previously enacted restrictions.

Sberbank is conducting business as usual. Most of the limitations are already in place. Breaking ties with SWIFT won't alter how things are now in international payments. Domestic transactions will be handled by the bank in a conventional manner and are not dependent on SWIFT, according to the Russian lender.

The majority of Russian lenders and 52 international companies from 12 countries now have access to the System for Transfer of Financial Messages (SPFS), which is the nation's substitute for SWIFT, according to Elvira Nabiullina, head of the Russian Central Bank. The regulator also stated that it intended to protect the anonymity of payment system participants.

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