F OR WEEKS Russia has been massing troops and tanks near the Ukrainian border. Neither talks with nor threats from the West have stemmed the flow. With America and its allies loth to commit forces, another option is gaining prominence: cutting Russia off from SWIFT , the messaging network used by 11,000 banks in 200 countries to make cross-border payments. Flicking a switch seems safer than putting boots on the ground. But it could have dangerous consequences. A first hurdle would be getting SWIFT to comply. The co-operative of banks, based in Belgium, vows to be politically neutral. Many European countries, such as Germany, do a lot of business with Russia, and may oppose the plan. But there is a precedent. In 2018 America managed to force SWIFT to ditch Iranian banks even in the face of European resistance. America would probably have its way again. It could threaten to pull its own banks from SWIFT , or to seize infrastructure vital to the network, such as a data centre in Virginia. In 2020 it used similar threats to force SITA , a network of global airlines based in Switzerland, to disconnect carriers from countries facing American sanctions. But would… Read full this story
- Daily Drive-Thru: Tesla's Model 3 debut, Audi's cost-cutting plan, 40 years of BMW's 7 Series and more
- Innovate, cut costs: how a Russian oil firm navigates global supply curbs
- How to lower your housing costs, whether you rent or own
- I went to three Taylor Swift concerts in 72 hours, and it was completely, utterly worth it
- U.S. Risks Losing World Power to China and Russia by Splitting with Allies on Iran, Experts Say
- Judge refuses to dismiss SCE&G’s suit to block 15% rate cut for customers
- Russia Will Fight to Be World's Top Space Power, Agency Chief Says
- ‘Battle for Africa’: Russia Pushes Into ‘Free Country for the Taking’ In Attempt to Rival the West
- What Is the Open Skies Treaty? Trump Blocks Funding for Surveillance Program That Includes Russia
- Hidden Figures: How Donald Trump Is Rigging the Census
The hidden costs of cutting Russia off from SWIFT have 328 words, post on www.economist.com at December 18, 2021. This is cached page on wBird. If you want remove this page, please contact us.