The US, the EU, the UK, and Canada agree to cut off a “certain number of Russian banks” from the SWIFT international payments system

Axios 2022-02-28

Context & Ripple Effects

The joint move put the US, EU, UK, and Canada behind a shared restriction on Russian banks’ access to a core cross-border payments channel. Later coverage shows the enforcement focus extending beyond bank messaging: US and UK authorities reviewed Tether flows through Moscow-based Garantex as part of a sanctions-evasion crackdown.

The EU’s subsequent proposal to ban crypto transactions with Russia frames the SWIFT restriction as an early boundary in a broader effort to close alternative payment routes.

First-order effects

The Russian banks selected by the four governments lose access to SWIFT, disrupting their ability to exchange payment instructions through that system.
Banks and counterparties in the US, EU, UK, and Canada must apply the restriction to transactions involving the designated Russian institutions.

Second-order effects

Payment activity displaced from restricted banks becomes a more prominent sanctions-enforcement concern, reflected in the later US and UK review of Tether transactions linked to Garantex.
Crypto platforms and stablecoin-based payment channels face greater scrutiny as potential routes around restrictions on conventional banking access.

Third-order effects

Sanctions enforcement is broadening from access to bank-to-bank messaging toward the payment channels that can substitute for it, including crypto transactions.
If coordinated restrictions continue to expand, cross-border payment providers will face more pressure to screen not only sanctioned institutions but also transaction routes associated with circumvention.

The trend: Western sanctions policy is evolving from restricting named banks’ payment-system access to policing alternative rails that can sustain cross-border transfers.

Discussion

@billackman Bill Ackman on x
I wouldn't want to keep money in a bank that can't access the SWIFT system. Once a bank can't transfer or receive funds from other banks, its solvency can be at risk. If I were Russian, I would take my money out now. Bank runs could begin in Russia on Monday. #StandWithUkraine
@fedorovmykhailo @fedorovmykhailo on x
Mark Zuckerberg, while you create Metaverse — Russia ruins real life in Ukraine! We ask you to ban access to @facebookapp and @instagram from Russia — as long as tanks and missiles attack our kindergartens and hospitals! @Meta.
@secblinken Secretary Antony Blinken on x
As a result of Putin's war on Ukraine, we join with leaders of EU, France, Germany, Italy, UK and Canada to ensure key sanctioned Russian banks are disconnected from SWIFT, impose restrictions on Russian Central Bank, and further identify and freeze assets of sanctioned Russians.
@k8em0 @k8em0 on x
Before I'm attacked regarding #notall Russian hackers supporting P*tin's war, I know that. But that's unfortunately not how economic sanctions work. The fact that Meta took action to comply with the sanctions faster than these “nimble” startups should give a sense of priorities.
@anneapplebaum Anne Applebaum on x
The EU and the US have moved hard, fast and together, @davidfrum writes. Here's what it means: https://www.theatlantic.com/ ...
@chrislabossiere Chris LaBossiere on x
Stage two of this war starts tomorrow morning in Russia when the financial system collapses. A great article by @davidfrum - if not a bit scary to game theory out. Putin must be contained at some point as Russia is now staring down a catastrophe that will feel nuclear. https://tw…
@vabvox Victoria Brownworth on x
For everyone applauding Facebook for removing Russian ads and monetizing Russian products— that's part of of sanctions. It's not Zuckerberg being morally ethical.
@davidfrum David Frum on x
A friend asked me a question about my article on central bank sanctions and SWIFT ... 1/x https://www.theatlantic.com/ ...
@whitehouse @whitehouse on x
As a result of Putin's ongoing assault on Ukraine, @POTUS and the leaders of the European Commission, France, Germany, Italy, the UK, and Canada decided to take specific measures to further isolate Russia from the international financial system. https://www.whitehouse.gov/...
@netblocks @netblocks on x
The digital landscape is shifting as the international community acts to sanction Russia for invading Ukraine. ➡️ Twitter/Facebook restricted in Russia ➡️ Cyberattacks on defence/banking sectors ➡️ State media apps barred 📰 https://netblocks.org/... Explainer thread by @joetidy: …
@peterzeihan Peter Zeihan on x
A general purge of Russia from global social media has begun. https://www.axios.com/...
@davidfrum David Frum on x
EU & US just announced sanctions against the Russian central bank. I explain here why these measures could be so devastating: the financial equivalent of a nuclear strike https://www.theatlantic.com/ ...
@balajis Balaji Srinivasan on x
This is much bigger than even the SWIFT shutdown. Russia made the mistake of holding its assets on computers where others have root access. With a keypress they got shut down. QWERTY was in retrospect much more of a threat to them than NATO. https://www.washingtonpost.com/ ... h…
@balajis Balaji Srinivasan on x
If the financial nuking of Russia is sufficient to defeat it, that's the transition of national security fully into the digital realm. Tanks don't matter against sufficient social media and financial control. Everyone then recalculates the board. The physical is now secondary.
@justintrudeau Justin Trudeau on x
For more on the restrictive measures that we're committed to implementing within the coming days, such as removing Russian banks from the SWIFT payment system and paralyzing their central bank, click here: https://pm.gc.ca/...
@statedept @statedept on x
.@POTUS said the United States would impose swift and severe consequences if Russia invaded Ukraine. Today, the United States, Canada, and our European Allies announced that select Russian banks will be removed from SWIFT. Joint Statement: https://www.whitehouse.gov/...
@shaanvp Shaan Puri on x
Moral dillemma for crypto. The west is de-banking Russia. Cut off SWIFT, freeze russian central bank assets. So if Russia turned to crypto, and crypto enabled them to continue the war/invasion/human suffering. how would you feel?
@anildash @anildash on x
@ShaanVP Enabling things like that is exactly the goal of many of the earliest and most strident crypto advocates. They are pretty consistent about being unbothered by even the most immoral uses of the infrastructure.
@zacharybasu Zach Basu on x
In addition to SWIFT and Russian Central Bank sanctions, Western allies are forming a joint task force to “collectively hunt down the physical assets of sanctioned Russian companies and oligarchs — their yachts, jets, fancy cars and luxury homes.” https://www.axios.com/...
@ivohdaalder Ivo Daalder on x
Smart to work with Allies to maximize impact of sanctions. Much better to walk together than run ahead alone. These sanctions only work if done in tandem with EU and others. https://twitter.com/...
@mcfaul Michael McFaul on x
Huge. Well done leaders of the free world! Joint Statement on Further Restrictive Economic Measures https://www.whitehouse.gov/... via @whitehouse
@jeneps Jennifer Epstein on x
The Russian banks already sanctioned by the EU, U.S., others are the first targets for being cut out of SWIFT, but other Russian banks could be added, German spokesman says. https://www.bloomberg.com/...
@ryan_chua Ryan Edward Chua on x
A consensus has emerged to prevent Russia from using the plumbing of the modern financial system and isolate it as a pariah similar to Iran, Venezuela and North Korea. https://www.bloomberg.com/... via @bpolitics
@carnage4life @carnage4life on x
I wonder if Coinbase product teams can discuss what to do if they get an influx of Russian customers after the SWIFT ban kicks in or whether that counts as discussing politics at work?
@axios @axios on x
In addition to the SWIFT ejection, Western countries agreed to: 1. Undermine the Russian Central Bank's ability to defend the ruble. 2. Limit the sale of “golden passports” that allow wealthy Russians to become citizens of Western countries. https://www.axios.com/...
@mdudas Mike Daodas on x
this is a major sanction that is much needed but will also impact every russian citizen perhaps the wake up call that everyone who can should self custody some portion of wealth offline in currencies that can access censorship resistant global networks https://www.theblockcrypto.…
@emilyhorne46 Emily Horne on x
Continuing our historic coordination, the U.S. and our partners are: ✅disconnecting key sanctioned Russian banks from SWIFT ✅targeting the Russian Central Bank ✅launching joint task force to hunt down assets of sanctioned Russian companies & oligarchs https://www.whitehouse.gov/.…
@borisjohnson Boris Johnson on x
Read our Joint Statement: https://www.gov.uk/...
@ghostofnakadai @ghostofnakadai on x
“some” banks is the keyword here. https://twitter.com/...
@timobrien Tim O'Brien on x
Twin financial attacks afoot: A near-consensus to prevent Russia from accessing the banking system by isolating it as a pariah state akin to Iran/North Korea while also targeting the $643 billion of central bank reserves Putin amassed ahead of his attack. https://www.bloomberg.co…
@anilvohra1962 @anilvohra1962 on x
Cutting off Russia from SWIFT and sanctioning the Bank of Russia would be severe punishment for the people of Russia. Right now those people are anti Putin and opposed to his war. Forcing the nation into bankruptcy will give them a reason to back Putin and fight the oppressors. h…
@schuldensuehner @schuldensuehner on x
US is weighing sanctions on #Russia's central bank, a move that would target much of the $643bn in reserves that Russian President Vladimir Putin had amassed ahead of his invasion of #Ukraine. Russia's CenBank has moved from US Dollar into Euro & Yuan. https://www.bloomberg.com/.…
@lisaabramowicz1 Lisa Abramowicz on x
“Sanctioning Russia's central bank is likely to have a dramatic effect on the Russian economy and its banking system, similar to what we saw in 1991. This would likely lead to massive bank runs...& possibly, a full-on collapse of Russia's financial system” https://www.bloomberg.c…
@whitehouse @whitehouse on x
Continuing our lock step, historic coordination, the Leaders decided disconnect key sanctioned Russian banks from SWIFT, target the Russian central bank, and launch a joint task force to hunt down assets of sanctioned Russian companies and oligarchs.
@martin_indyk Martin Indyk on x
The ratchet goes up several notches. What's remarkable is how Zelensky's and Ukrainians' courage in the face of Putin's violent invasion has so SWIFTly galvanized world public opinion to press their governments to do more to punish Russia and help Ukraine. https://www.axios.com/.…
@axios @axios on x
Some European allies had previously expressed concern that disconnecting Russian banks' access to the primary system for global financial transactions would cause collateral economic damage. https://www.axios.com/...

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