Global Leaders Cracking Down on Banks that Aid Russian Sanctions Evasion
G7 Nations and EU Considering Tougher Measures on Banks Helping Russia Evade Sanctions
Bishkek – The Group of Seven nations and the European Union are currently exploring options to increase pressure on banks that assist Moscow in bypassing sanctions. According to reports from Bloomberg, the proposed measures aim to target banks in third countries that utilize the Financial Messaging System of the Bank of Russia (SPFS), which serves as an alternative to the international SWIFT system.
These discussions come ahead of the upcoming G7 summit in Italy, where leaders will deliberate on ways to further enforce sanctions imposed on Russia following its actions in Ukraine.
“G7 has consistently prioritized preventing Russia from accessing crucial technologies for weapons or their production. Despite these efforts, Moscow has been able to evade many of these restrictions by importing prohibited goods through intermediary countries such as China, Turkey, the United Arab Emirates, and Central Asian states,” reports the media outlet.
Recent attention has been directed towards banks that allegedly facilitated transactions for these purchases. Data indicates a significant increase in the use of SPFS in 2023 compared to previous years, with over 150 foreign banks in 20 countries reportedly engaging with the system, including institutions from China, Belarus, Armenia, Tajikistan, and Kazakhstan.
It is noteworthy that 557 financial institutions are currently linked to the Russian equivalent of SWIFT, with 159 of them being non-residents from various countries.
As discussions progress, it remains to be seen how these potential measures will impact banking institutions involved in aiding Russia in circumventing sanctions. The issue is likely to be a key topic for deliberation at the upcoming G7 summit.
