EU Moves to Expel 15 More Russian Banks From SWIFT in Latest Sanctions

The European Union is preparing to cut around 15 additional Russian banks from the SWIFT  international payment system as part of its 16th sanctions package, Bloomberg reported on January 29, citing sources familiar with the discussions.

EU member states received the proposal this week, but the sources did not disclose which banks would be affected.

In addition to the SWIFT restrictions, the EU is also considering a phased ban on Russian aluminum imports and sanctions on more than 70 vessels from Russia’s shadow fleet , which continue to transport oil above the Western-imposed price cap of $60 per barrel.

However, sources noted that the final sanctions package could be adjusted, as it requires unanimous approval from all EU member states. The goal is to adopt the package in time before Russia’s full-scale invasion of Ukraine marks its third year.

Since the start of the war in February 2022, Russian banks have been gradually cut off from SWIFT, with major financial institutions such as Sberbank, VTB, Rosselkhozbank, Promsvyazbank, and Sovcombank among the first to be disconnected. However, as of September 2024, over 200 Russian banks remain connected to SWIFT, though they are prohibited from using the system for domestic transactions.

Earlier, China and India suspended their trade in Russian oil as US sanctions have triggered a sharp increase in tanker freight rates.