Many Russian banks have been isolated from the SWIFT payments system...which could cause headaches for the company and its business operations.
Background: We know things between Russia and Ukraine have unfortunately escalated. And now, the Western world is trying to step in and do its bit.
What happened: The US, UK and Europe have announced a plan to isolate certain Russian banks from The Society for Worldwide Interbank Financial Telecommunication - aka SWIFT.
What else: SWIFT is a messaging system that helps facilitate international payments, and it's used by 11,000 banks worldwide. SWIFT will ban certain Russian banks from accessing the system...and assets of Russia's central bank will be frozen. Eeep!
💡While the US, UK and EU aren't engaging in physical warfare, they're now attempting a form of economic warfare. This plan is supposed to isolate Russia from the international financial system.
💡Excluding Russian banks from the SWIFT system means that most Russians will be forced to make payments via telephone or fax machine. Real old-school stuff.
💡For exporters, they will likely find selling goods to Russia riskier and more expensive. And foreign buyers of Russian goods will also find it more difficult to trade.
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