The European Commission has proposed to remove Sberbank from the international SWIFT transaction and messaging system, along with another two unnamed banks.
The move to “de-SWIFT” Russia’s largest bank is the latest proposed escalation of sanctions in light of the invasion of Ukraine. Should the proposal pass it is expected to deliver a heavy blow to the Russian economy, with a large number of businesses dependent on Sberbank and its continued inclusion in the SWIFT system.
“We de-SWIFT Sberbank – by far Russia’s largest bank, and two other major banks. By that, we hit banks that are systemically critical to the Russian financial system and Putin’s ability to wage destruction,” said European Commission chief Ursula von der Leyen, addressing the European Parliament.
“This will solidify the complete isolation of the Russian financial sector from the global system,” she added.
In addition to the moves against the Russian banking sector, the EU is also expected to approve a ban on three state-backed broadcasters accused of spreading disinformation over the military operations in Ukraine.
“They will not be allowed to distribute their content anymore in the European Union, in whatever shape or form, be it on cable, via satellite, on the internet or via smartphone apps,” said von der Leyen.