EU Bars 7 Russian Banks from SWIFT, but Spares Those in Energy

SWIFT logo is seen in this illustration taken, Bosnia and Herzegovina, February 25, 2022. (Reuters)
SWIFT logo is seen in this illustration taken, Bosnia and Herzegovina, February 25, 2022. (Reuters)
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EU Bars 7 Russian Banks from SWIFT, but Spares Those in Energy

SWIFT logo is seen in this illustration taken, Bosnia and Herzegovina, February 25, 2022. (Reuters)
SWIFT logo is seen in this illustration taken, Bosnia and Herzegovina, February 25, 2022. (Reuters)

The European Union said on Wednesday it was excluding seven Russian banks from the SWIFT messaging system, but stopped short of including those handling energy payments, in the latest sanctions imposed on Russia over its invasion of Ukraine.

Russia's second-largest bank VTB, Bank Otrkitie, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank and VEB will each be given 10 days to wind-down their SWIFT operations, the EU said in its official journal.

SWIFT is the dominant messaging system underpinning global financial transactions and the EU, the United States, Britain and Canada moved on Saturday to block certain Russian banks from it, but had not said which would be hit.

The United States and Britain had been pushing for the SWIFT ban, but some in the euro zone had taken some persuading given the region's reliance on Russian energy exports.

Removing Russian banks from SWIFT, a measure seen as drastic and unlikely only a week ago, is one of the most powerful tools Western authorities have used to punish Russia for what Moscow describes as a "special operation" in Ukraine.

A senior EU official said the banks were chosen based on their connections to the Russian state, with public banks already sanctioned after Russia's annexation of Crimea in 2014.

"All these banks that we have listed under SWIFT... they are all based on their connection to the state and the implicit connection to the war effort. We have not gone for a blanket ban across the whole banking system," the official said.

Sberbank, Russia's largest lender, and Gazprombank were not included because they are the main channels for payments for Russian oil and gas, which EU countries are still buying despite the conflict in Ukraine.

The EU official added that these two Russian banks were nevertheless subject to other measures.

Officials have been concerned about disrupting energy flows to Europe and the official said it was not possible simply to allow energy-related transactions and exclude others as SWIFT was unable to differentiate between types of payments.

Polish Prime Minister Mateusz Morawiecki said the decision to exclude Sberbank and Gazprombank from sanctions due to "transactions related to energy supplies to the EU" was unacceptable.

"As Poland, we demand that all Russian entities, thanks to which Russia finances the war in Ukraine, be effectively and fully covered by sanctions," he wrote on Facebook.

Lithuanian Prime Minister Ingrida Simonyte told a news briefing that more Russian banks could be excluded from SWIFT, which has 11,000 members and no clear global rival.

Although China has set up a system, it remains small, EU officials said, and despite the existence of a Russian system, SWIFT was still used for some 70% of transfers there.

Banks could still carry out transfers through work-arounds such as faxes or bilateral messaging systems, if they existed.

VEB said it was largely focused on domestic projects which were unaffected. For overseas-related businesses it would use SPFS, a messaging system developed by Russia's central bank.

Sovcombank said SWIFT would not impact it because other sanctions had already blocked its ability to make overseas payments. Promsvyazbank said it was prepared for the disconnection from SWIFT and it would not have a significant impact on the bank's operations.

VTB and Otkritie said they would not be impacted.

Novikombank and Bank Rossiya did not respond to requests for comment.



Saudi-Indian Business Council: Modi’s Visit to Launch Strategic Private Sector Partnership

A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
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Saudi-Indian Business Council: Modi’s Visit to Launch Strategic Private Sector Partnership

A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)

Indian Prime Minister Narendra Modi is expected to arrive in Saudi Arabia on Tuesday for an official visit during which he will meet with Crown Prince Mohammed bin Salman to discuss trade, investment, and energy cooperation.

In anticipation of the visit, the Saudi-Indian business community has expressed optimism about strengthening bilateral ties and advancing toward deeper economic integration through the launch of new joint projects that aim to establish a strategic partnership between the two countries’ private sectors.

Abdulaziz Al-Qahtani, Chairman of the Saudi-Indian Business Council, told Asharq Al-Awsat that India is Saudi Arabia’s third-largest trading partner in terms of exports and fourth in terms of imports, underscoring the importance of their economic relationship.

Al-Qahtani noted that trade between the two countries has grown significantly in recent years, with total bilateral trade reaching approximately $157 billion in 2023—a 20% year-on-year increase.

India’s major exports to the Kingdom include chemical products, organic and inorganic materials, pearls, precious stones, metals, copper, and aluminum. In return, Saudi imports from India consist of plant-based and mineral products, pharmaceuticals, apparel, iron goods, machinery, electrical equipment, and vehicles.

Regarding new initiatives and agreements, Al-Qahtani highlighted two private sector agreements signed in February, signaling both nations’ serious commitment to expanding cooperation in trade, investment, and economic development.

He added that the council is currently working on several initiatives, including activating the bilateral investment promotion and protection agreement, implementing the double taxation avoidance treaty, and proposing frameworks for preferential treatment. These steps aim to enable unconventional projects to benefit from advantages available in both countries.

Al-Qahtani also noted the rising presence of Indian companies in the Saudi market, with more than 50 firms currently operating in the Kingdom. Several of these companies have recently opened regional headquarters in Saudi Arabia.

The sectors with the highest Indian activity include construction—with 20 companies in this field—along with health, training, and technology. “We are now set to begin cooperation in the manufacturing sector as well,” Al-Qahtani said.