Ukraine Crisis: US & Allies Move To Cripple Russia’s Economy, Kicked Out From SWIFT

 By Elizabeth Chukwuma

  For rolling out military tanks and other offensive air missiles against military installations in Ukraine Republic,  may have triggered the leading members of the North Atlantic Treaty Organsation, NATO,  to unveil  series of sanctions against the  Russian  Federation aimed ‘’asphyxiating Russia’s economy.  The US and its allies, were said to have targeted the banks, military exports, oil refineries and also sever it from the global payment system, described as the worse of the sanctions.

 The US and its allies were said to have been joined by the Asian countries of Taiwan and Japan, in imposing the sanctions on Russian. There are indications that China, described as one of the major importers of Rusian oil and gas, will turn its back on the country as being pressured to do so by the US.

Aware that the Russian Banks had raised over $600 billion to support the Kremlin in the war against Ukraine, may have   informed why the NATO member countries had agreed to disconnect 10 top Russian banks and Financial Institutions from the Society for Worldwide Inter-bank Financial Telecommunication, SWIFT which were said to be holding about 80% of the Russian banking sector sector’s total Assets, out of 30 such banks operating in the country.

Biden: US president, Spearheads The Removal Of Russia From SWIFT, Targets Banks And Financial Institutions

. For a start, the G10, Central Bank, countries, controlling the SWIFT Operations, were said to have singled out the state owned Sberbank and VTB Bank, described as the two largest banks in the country to test run their action. There are indications that the sanction list also include Otkritie, Sovcombank, Novikonbank and some top executives of the affected banks for now.     

Financial analysts also believe  that, the US and its allies could remove Russia from SWIFT, because  it is  overseen  by  the G10 Central Banks  as well as the European Union Central Bank  with it lead overseer, National Bank of Belgium. According to Russian National SWIFT Association  the country has the second largest  number of users after the US,  with some 300 Russian Financial Institutions in the system, more than half  of Russian’s Financial Institutions.

SWIFT, according to informed sources, is an Independent enterprise based in Brussels, Belgium, controlled by over 3,5000 firms  from across  the world  serving as an internal messaging system between more than 11,000 banks and Financial Institutions in over 200 countries and territories including Russia .

The NATO leading member countries may have taken the decision to remove Russia from SWIFT ‘’to rubbish the Russian banks and its economy and subsequently force Putin, to withdraw the country’ troops from Ukraine two major cities of Kyiv, the Capital and Kharkiv          .       

  As a prelude to actualising its dream of crippling the Russian economy,  the US  banks have already  sever  their Correspondent ties   which allow its banks to make  payments between  the one another  and move money around the globe, with  Russia’s  largest bank,  Sberbank, within 30 days. The removal of Russia from SWIFT,  analysts had said  had effectively kicked out  Russian banks  out of the US, Financial sysyem , bans their trade with Americans  and freezes their US, Assets.

   SWIFT Group   removal of Russia from its list, based on the decision of the US and its allies decision ‘’to impose sanctions on the country speaks volume.  The Group had said that the decision to impose sanctions on countries  and individual  entities  participating in SWIFT  ‘’ rests solely with the Competent government studies and applicable Legislators’’, stressing that as an  enterprise   incorporated under the Belgium  law,  their obligation, first is to comply with related  EU and Belgium  regulations ’’.

Joe Biden, the US, President and its allies, may have had at the back of their mind  that   the Russian Central Bank  might want to make nonsense of the sanctions in order not to have any devastating effect on the people,  by deploying its hug  international reserves to the economy  that the NATO leading member country have also  planned to come up with  other restrictive measures that  will prevent the Russian apex bank  from  doing so.  

The argument in NATO  circles was that  the only way Russian’s economy could  survive the US and its allies sanctions for invading neighbouring Ukraine  would be to access   the over  $600 billion  war chest  of  the country’s foreign reserves. The wide range measures that would be further imposed on Russia,  according to a Statement released  by the White House on Thursday, February 23, 2022, includes  restrictions  on semiconductors,  telecommunication,  encryption security, lasers, sensors, navigation, avionics, and maritime technologies.  It was said to have equally targeted the country’s military end-users, including the ministry of Defence., Attracts Anger Of Us

Putin: Roll Out Military Tanks, Invaded Ukraine As He Attracts The Anger Of US and Its Allies

 More damaging of the wide range of measures to cripple the Russian economy over its invasion of Ukraine, was the sanctions on two significant Belarusian state-owned banks to forestall the Russian government from using it for the transactions. Japan, which may not have forgotten its experience in the hands of the US, during the sWWII, because of the events in pearl Harbour, which led the dropping of Atomic bomb in Hiroshima and Nagasaki, two sprawling industrial cities, may not have wanted history to repeat itself as it is toying the line of US and its allies to strengthen the sanction against Russia by cutting –off Correspondents ties with banks and   Financial Institutions as well as halt  export s  of military  used   equipment  such as semiconductors to the country.         

 There is no gainsaying the fact that the sanctions from the US  and its allies, including Japan and  other Asian countries,  will deliver a big  shock  to Russian companies and  customers, particular, buyers of the country’s  oil and gas  exports denominated in dollars, particular , the heavy industries  in China, Japan and South Korea. 

 Oil and gas , accounts , for about 40% of Russian ‘s annual revenue  which might drop , as China,  reconsiders ,buying its oil and gas from the member countries of the Organisation of Petroleum Exporting Countries, OPEC, to bridge the gap created with the sanctions on Russia, which made trading with the country and making payments difficult in the recent time. Although, the the US and its allies, had taken the decision to remove Russia, from SWIFT, with the intention that it would only have adverse effect on the Russia economy, the Value News findings shows that  the big time  economies  in Europe and Asia are also being affected because of the reduced volume of oil and gas  exports from the OPEC, member countries to service their plants.

However, military analyst would want the leading NATO members and G10 Central Banks, controlling SWIFT, to trade with caution in their sanctions against banks and Financial Institutions in Russian under the present circumstance.   This is because the system does not move money but only moves the information about the money. Take for instance in 2021, it had recorded 42 million messages daily and 82 million messages between February 1, 2022 and now, that includes currency exchanges, trades and more.  Joe   Biden, US, President, had made clear to those that cares to listen that the decision to impose sanctions on Russia over its invasion of Ukraine was ‘’to collectively ensure   that the invasion   is a ‘’strategic failure for Putin’’. 

    Denys Shmmhal, Ukraine, Prime Minister, is happy that the US and its allies had   sanctionsed Russia, particular, removal from the SWIFT that, had put the country’s banks and Financial Institutions into trouble.  

Zelensky: Embattled President Of Ukraine

The Ukraine Prime minister, who may have spoken the mind of Volodymyr Zelensky, the country’s President , when he  tweeted that’’ the country  appreciates the US and its allies  ‘’ support and real help  in this dark time’’, stressing that ‘’the Ukrainian people will never forget this US and its allies support, as they are still holding on to the Russian Army  in the war. The US and its allies, may not   have deployed troops to Ukraine to fight alongside the country’s military against Russia military, but were said to   have supported the country with the export of arms and ammunition through Poland. Military analysts had said that the type of arms that have entered Ukraine in the last one week have never been seen in any war in Europe before.

The US and its allies support to the Ukrainian government in the ongoing war with Russia, may have emboldened the Ukrainian President, Zelensky, who is talking tough on where to hold talks with Putin to end the crisis. He has rejected moves to slate the   talks in Belarus, a country believed to be in support of Ruusia.

The Ukrainian President, was said to have proposed   to hold the  talks, with the Russian strong man in the Capitals of Poland,   Slovakia, Hungary, Turkey  or  Azerbaijan  but Putin had remained silent, meaning that the war will still drag on to help the west  sell their arms.

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