EU Moves to Exclude 15 Russian Banks from SWIFT in Bold New Sanctions Initiative

The European Union (EU) has proposed to disconnect approximately 15 Russian banks from the SWIFT international banking system as part of its 16th sanctions package. This proposal was reported on January 29, 2025, amid ongoing tensions following Russia’s invasion of Ukraine in February 2022.

The proposed sanctions package by the EU includes a gradual ban on Russian aluminum imports and restrictions on over 70 ships in Russia’s “shadow fleet,” which are accused of transporting oil above the $60-per-barrel price cap. These measures are part of the EU’s ongoing efforts to apply economic pressure on Russia in response to its actions in Ukraine.

The sanctions package requires unanimous approval from all 27 EU member states, making the process complex. Hungary, known as Russia’s closest ally within the EU, has historically resisted extending sanctions against the Kremlin, complicating negotiations. Recently, Hungary’s agreement allowed the extension of existing sanctions, but further discussions are necessary for the new proposals.

Since the onset of the war, major Russian banks have been targeted, with many already cut off from SWIFT. In response, Russia created its own financial system, SPFS, for domestic and some international transactions. The EU has also previously banned European companies from connecting to SPFS, showcasing a continued commitment to isolating Russia economically.

As the third anniversary of the Ukraine invasion approaches, these discussions highlight the ongoing geopolitical tensions and the EU’s strategy to maintain pressure on Russia through economic sanctions.

The EU’s proposed sanctions reflect a sustained effort to counteract Russian aggression and support Ukraine. The outcome of these discussions will significantly influence the future of EU-Russia relations and the ongoing conflict in Ukraine.