Forcing Russia out of Swift is dangerous, Germany’s biggest bank warns Business

Germany’s biggest lender has warned that excluding Russia from the Swift international payments system would pose an economic ‘danger’ as calls for tougher sanctions against Vladimir Putin intensify.

Deutsche Bank published a research report on Friday saying that “banning Swift for Russia will complicate trade and amplify nervousness” and could “precipitate the expansion of rival messaging networks and payment methods that circumvent sanctions. “.

“Long term, danger may lurk – countries unhappy with Western allies that flex their financial hegemony may team up to set up a rival system with infrastructure they can control,” the report’s author said, Marion Laboure.

A Deutsche Bank spokesperson said: “We support the decisions of the German government and its allies and will promptly and fully implement the sanctions and other measures imposed. As part of this, we continue to support our clients globally, including with regard to their Russian and Russian-related activities.

“Most of our customers with business or needs in Russia are European or multinational companies that are currently adapting their business activities in the country.”

The bank previously tweeted a link to the independent research report, writing that “banning Russia from Swift will complicate trade and amplify jitters”, before later removing it.

The report comes days after Germany was accused of resisting efforts to exclude Russia’s biggest bank from the scheme.

This week, Berlin pushed back on plans to include state-backed lender Sberbank on a list of financial institutions ejected from the banking system, officials told Bloomberg this week.

Last month, Kiev said its Western allies would have the blood of innocent Ukrainians on their hands if Europe did not restrict Russia’s access to Swift. The world’s leading payment clearing system underpins most international transactions and is crucial to global commerce.

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This notice was published: 2022-03-11 11:07:18

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