The option of cutting Russia off from the SWIFT global interbank payments system remained open on Friday, according to French Finance Minister Bruno Le Maire, but he saw it as a last resort.
As part of intensified penalties over the invasion of Ukraine, the United States and the European Union decided not to cut Russia off from SWIFT. However, US President Joe Biden suggested on Thursday that they might review the subject.
“This is the absolute last resort, SWIFT, but it is one of the possibilities that remain on the table,” Le Maire told reporters in English ahead of a meeting with his eurozone peers in Paris.
Germany’s finance minister, Christian Lindner, said ahead of the meeting that “all possibilities are on the table” in addition to those already approved.
“The first sanctions against Russia have been imposed, and they are harming the Russian people and will severely stifle the Russian economy,” he stated.
The finance ministers are expected to examine the conflict’s effects and the sanctions that will follow for the European economy. According to economists, it has the ability to both increase inflationary pressures and stifles economic progress.
On Thursday, policymakers from the European Central Bank gathered in Paris. Later on Friday, ECB President Christine Lagarde will hold a press conference.
The European Union agreed on Thursday to freeze Russian assets in the union and deny Russian banks access to European financial markets as part of “the strongest package of sanctions we have ever applied,” according to EU foreign policy chief Josep Borrell.
The sanctions will target Russia’s energy and transportation industries, among others, and will use export controls to cripple its trade and industry.
On Friday, the United Kingdom renewed its plea for Russia to be excluded from SWIFT. A number of capitals are hesitant to do so because, while it would hurt Russian banks, it would make it difficult for creditors to get their money back.
Observers have also indicated that it could make payments to Russia more difficult for countries that import Russian gas.
