To be disappointed that the EU won't sanction SWIFT

[cheddez]

Just that really. Why the reluctance?

@Bugbeds

This is cowardly and despicable from the EU.

Really? What about the 23 EU countries who supported it?

@MaMaLa321

It really isn’t as simple as EU bad/Brexit good or vice Versa. No, but it's showing that the EU isn't the wonderful organisation that so many have claimed on MN.

You’re the one bringing the EU into it, instead of focusing on how to sanction Russia effectively after their invasion of the Ukraine.

This is cowardly and despicable from the EU.

Qualify this view.

To be fair, this whole discussion is pretty much academic as Germany seem to have capitulated and suggested SWIFT will be part of the next (inevitable) round of sanctions.

@Armadeus

So if there was no EU, how would countries cooperate to punish Putin. At least they are discussing what to do civilly and logically en masse rather than individual countries taking piecemeal ineffective measures...

The first iteration of the EU was created by the Treaty of Rome in 1957. By your reasoning, no alliance of nations was capable of civil and logical cooperation before then. One wonders how we made it all the way to 2022.

You’re the one bringing the EU into it, instead of focusing on how to sanction Russia effectively after their invasion of the Ukraine.

It is possible to hold two thoughts at the same time. This is the first real test of the UK on the global stage post-Brexit, in terms of international relations. So far, neither it nor the EU looks to be much of an outlier in terms of the international response to the invasion of the Ukraine. Let's see what happens. Notably absent from the UK's diplomatic efforts, which I would have expected to see, is some cosying up to India (which Biden has done today).

@MaMaLa321

It's just the EU. Do you want an organisation that will hold endless meetings and work incredibly slowly? The EU is perfect. Do you want to move quickly? Forget it, its like a sclerotic elephant. Same scenario as the vaccine rollout.

Agree. When speed and decisiveness is required the EU are found lacking (again). They will spend the next few days having meetings, making phone calls and general fannying about trying to get a consensus among 27.

Whilst SWIFT won't save lives it is a show of support for the people of Ukraine and will send a strong message to Putin.

They should be on the same page with this, making a stand not bickering about leather shoes and exemptions and all the while people are being killed FFS.

@MaMaLa321

It really isn’t as simple as EU bad/Brexit good or vice Versa. No, but it's showing that the EU isn't the wonderful organisation that so many have claimed on MN.

Thank God Boris, at the helm of a Free Britain, is here to save the day

I think the answer is that it may be ineffective against Russia and damaging to the west. It isn’t as simple as just switching off a country. It’s been tried before with Iran and caused more chaos for other countries than for Iran plus drove Iran into exporting its oil to China which made it richer. And, s previous posters have mentioned, it doesn’t cut Russia out of anything as there are alternative systems.

There are more effective transactional sanctions, mainly disallowing Russia from certain currency clearances. The US ban on $ clearance yesterday is far more damaging than a SWIFT ban would be, particularly as oil and gas (ie Russia’s economy) are traded in $.

Having said that, SWIFT is becoming a symbolic issue so I think it will be enacted within a week or so.

Cypress and Italy have shifted position on Swift today.

And now Hungary.

Germany has backed targeted restrictions on SWIFT payments. Not sure what kind of heavy lifting the word targeted is doing there and whether it renders the statement a gesture.

As others have said, Putin has already said he will retaliate for the sanctions, the eu countries who opposes rely heavily on gas from Russia and they are deeply concerned that Russia will cut them off, which would cause their populations a lot of pain.

A friend works in the gas industry and says 1/3rd of gas used in Europe cones from Russia. If supply stops, it is going to immediatly create a shortage in Europe and prices would shoot up. In the whole of Europe, also the UK.
There is currently no way to compensate those shortages so other payment communications would be used, which may even be an advantage for Russia if their system is used.

Germany was the last country in the EU to object to sanctions on SWIFT payments. Even Biden seems to be rowing back a little.

It's to do with financial implications to other EU countries. Italy are against it because they sell a lot of luxury goods (Gucci etc) to rich Russians, so they feel they will be hit financially as well.