EU Thinks Russias SWIFT Cutoff Problematic As US Pushes To Finalize Sanctions - Reports - UrduPoint

The EU considers a cutoff of Russia from the SWIFT global payment system problematic as the US pushes them to finalize an array of sanctions against Moscow to be implemented in the event the latter invades Ukraine, Bloomberg reported on Thursday, citing people familiar with the discussions.

The US believes that agreeing on a sanctions package would send a clear message to Moscow, the report said. Potential measures under consideration right now include restrictions on Russia's ability to refinance its sovereign debt, sanctions on companies in the energy and defense sectors and a ban on Russia's participation in key international transaction networks like SWIFT, the report added.

However, cutting off Russia from SWIFT - which is used to transfer payments around the world - is considered extremely problematic due to potential disruptions of global markets for energy and other Russian exports, the report said.

There is also concern that Moscow may decide to cut off gas exports to Europe amid already-surging energy prices, the report added.

The European Parliament on Thursday enacted a resolution calling on the EU to be ready to impose sanctions against Russia in the event of escalation at the Ukrainian border. Tensions around Ukraine have escalated over the last several weeks amid an alleged buildup of Russian forces near the Ukrainian border. Moscow has repeatedly denied accusations that it is planning an invasion, arguing that Russia has the right to relocate the troops within its territory at its own discretion.