U.S. puts banning Russia from SWIFT system back in play

The U.S. is seriously considering whether to seek Russia’s expulsion from the SWIFT financial messaging system over the Ukraine invasion as allies in Europe warm to the idea of imposing a penalty that seemed unlikely just days ago, according to people familiar with the matter.

The U.S. is seriously considering whether to seek Russia’s expulsion from the SWIFT financial messaging system over the Ukraine invasion as allies in Europe warm to the idea of imposing a penalty that seemed unlikely just days ago, according to people familiar with the matter.

Biden administration officials are now debating whether to push for a directive from the European Union needed to ban Russia from SWIFT, though a U.S. and EU decision is not imminent, according to the people. Officials are discussing the matter with the Federal Reserve, which sits on SWIFT’s oversight body, two of the people said. Another person said talks have commenced with the European Commission.

The discussions by the U.S. mark a change in course after President Joe Biden said he was holding off because European allies had voiced concerns over the risk such a move posed to their economies.

But as Russian President Vladimir Putin continues a full-scale invasion of Ukraine that’s now advancing on Kyiv, officials in the U.S. and Europe are seeking tougher consequences against Moscow on top of the sanctions they’ve already unveiled.

All of the people discussed the matter on condition of anonymity to describe private deliberations. The U.S. National Security Council press office and Fed spokeswoman Michelle Smith declined to comment.

The chances of a move on SWIFT have been a moving target, and the likelihood remains unclear. While previously a faint prospect, the measure has grown more likely in the past few days, the people said, fueling the belief that it now could happen, though they stopped short of predicting it would.