be banned from using the crucial SWIFT pay system. It is a service which allows cross border transactions between over 11,000 banks and financial institutions across the globe. It is particularly crucial for Moscow to collect royalty payments on fossil fuel which fund its government.
“We have made it clear that all options are on the table when it comes to imposing steep costs on Russia’s unjustified and unprovoked invasion,” the Canadian PM said during a news conference in Ottawa. “Excluding Russian banks from SWIFT would make it even more difficult for President Putin to finance his brutalities.”
PM Trudeau’s statement makes him the most vocal proponent of the measure among the leaders of the Group of Seven inter-governmental political forum. While British Prime Minister Boris Johnson has also expressed his favour towards ejecting Russia from the payment system, the European Union, led by Germany, has opposed to such measures. This is mainly owing to a large number of goods that are being imported from Moscow, including oil, gas and wheat, for which payments are made through SWIFT.
Meanwhile, the United States appeared undecided on the idea, with White House Press Secretary Jen Psaki saying the SWIFT ban was still “an option on the table”. However, she went on to play down the significance of such measures saying “Many would argue that there are ways that the Russian leadership can get around that over the course of time.”
