EU to stay Russia in SWIFT, a global financial messaging service

EU to stay Russia in SWIFT. Russia is a member of SWIFT. SWIFT or Society for Worldwide Interbank Financial Telecommunications is a Belgian cooperative society. Its members are connected in a global network for safe and secured communication of financial messages. Currently, Europe, United States and Japan oversee the functioning of Belgian based society.

Baltic States that are three countries: Estonia, Latvia and Lithuania, propose on Thursday to forbid Russia’s access to SWIFT. Currently, the Baltic States are the members of NATO and EU.

However, at this juncture, EU seems unconvinced that it should eliminate Russia from the interbank payment system.

Why is it that EU to stay Russia in SWIFT?

European Union states are not willing to exclude Russia from SWIFT. The proposals to remove it from SWIFT come under the wake of Ukraine crisis.

Although, due to it Russian banks will suffer. However, at the same time, European lenders will not be able to get their money back.

BIS or Bank of International Settlements gives out data that European banks have a share of $30 billion exposed to Russia.

Due to lack of consensus among European states, there will not be a ban on Russia from SWIFT for the time being.

They also believe that Russia may also resort to other methods of payment.