[New post] U.S, U.K. and EU agree to cut Russian banks from global financial system
olumorocktv posted: " The Western powers have agreed to cut Russia out of the main international banking system by sharply tightening sanctions. The UK, US and EU have reached a deal to exclude several Russian banks from Swift, a global payments system. The measure was "
TheWestern powers have agreed to cut Russia out of the main international banking system by sharply tightening sanctions.
The UK, US and EU have reached a deal to exclude several Russian banks from Swift, a global payments system.
The measure was announced as Ukraine's capital city Kyiv faced a fourth night of air strikes after Vladimir Putin finally ordered his troops to invade.
In a joint statement, leaders of Europe, UK, US, and Canada, said: 'We stand with the Ukrainian government and the Ukrainian people in their heroic efforts to resist Russia's invasion.
Western powers have agreed to cut Russia from the main international banking system in a significant ratcheting up of sanctions.
The UK, US and EU have reached a deal to exclude several Russian banks from Swift, a global payments system.
The measure was announced as Ukraine's capital city Kyiv faced a fourth night of air strikes after Vladimir Putin finally ordered his troops to invade.
In a joint statement, leaders of Europe, UK, US, and Canada, said: 'We stand with the Ukrainian government and the Ukrainian people in their heroic efforts to resist Russia's invasion.
Russia's war represents an assault on fundamental international rules and norms that have prevailed since the Second World War, which we are committed to defending.
'We will hold Russia to account and collectively ensure that this way is a strategic failure for Putin.'
Swift connects thousands of financial institutions around the world.
Cutting Russia off from the system was seen as one of the toughest sanctions the West could impose.
The UK had been pushing for the measure, but other nations were reluctant due to the harm it could cause to companies that do business with Russia.
Banning Russia from Swift was seen as one of the biggest sanctions that could be imposed (Picture: AFP)
On Saturday Germany – a key hold-out – considerably softened its position and said they would back the ban, paving the way for a deal to be reached.
EU Commission President Ursula Von der Leyen said she will now propose to EU leaders that a 'certain number' of Russian banks are removed from Swift – something that will stop them from conducting most of their financial transactions worldwide and effectively block Russian imports and exports.
In a news briefing on Saturday night, she said Russia's army is committing 'barbaric actions' in Ukraine and Western allies must go further to 'cripple Putin's ability to finance his war machine'.
She said cutting several commercial banks from Swift 'will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally'.
She said more banks could be hit 'as appropriate'.
Other measures announced by the world leaders include:
Preventing the Russian Central Bank from 'deploying its international reserves in ways that undermine the impact of our sanctions'
Acting against the people and entities who facilitate the war in Ukraine and the 'harmful activities of the Russian government'. This includes limiting the sale of citizenship 'golden passports' which let wealthy Russians connected to the Russian government become citizens of Western countries with consequent access to financial systems
Launching a trans-Atlantic taskforce to make sure the sanctions are effective
Stepping up coordination against disinformation and other forms of hybrid warfare
Countries around the world are ramping up their support for Ukraine as it continues with its fierce resistance against Russia.
Germany, France and the Netherlands all announced new shipments of weapons on Saturday.
Britain has already pledged to continue to supply arms to Ukraine's embattled forces.
So far 2,000 anti-tank missile launchers have already been sent and armed forces minister James Heappey said the Ministry of Defence is working on plans to support a resistance movement and a government in exile if Ukraine was finally overran.
Western intelligence officials believe Putin wants to overthrow Ukraine's democratically elected government and install his own puppet leadership in a bid to wind back the clock to the Soviet era.
Yesterday, Boris Johnson accused the Russian leader of being a bent on a 'revanchist mission to overturn the post-Cold War order'.
He made the comments as he joined the US and EU in ordering personal sanctions against against Putin and and his foreign minister Sergei Lavrov.
However, the government faced criticism that is has still not gone far enough.
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