28 Jan 2015
US and Europe consider more sanctions vs Russia - BBH
FXStreet (Guatemala) - Analysts at BBH explained that given the increased tensions with Russia over Ukraine, the US and Europe are considering more sanctions against Russia.
"Last September, the European Parliament urged countries to consider excluding Russia from the SWIFT system."
"At the time, the Russian minister of economic development said such a move was unlikely."
"He was right, but the issue has not gone away. Earlier this week Prime Minister Medvedev threatened an “unlimited” response if Russia were to be excluded from SWIFT."
"Nothing appears to have come from the earlier Russian threat to develop a parallel system to SWIFT. The international payment system is a public good in a similar way that dollar and euro funding is a public good. As part of the sanction regime, Russian banks and companies have been denied access to these public goods."
"It may still be early to expect Russia to be barred from the SWIFT system. However, as financial channels are brought to bear, this cannot be ruled out indefinitely, especially if the confrontation escalates."
"Last September, the European Parliament urged countries to consider excluding Russia from the SWIFT system."
"At the time, the Russian minister of economic development said such a move was unlikely."
"He was right, but the issue has not gone away. Earlier this week Prime Minister Medvedev threatened an “unlimited” response if Russia were to be excluded from SWIFT."
"Nothing appears to have come from the earlier Russian threat to develop a parallel system to SWIFT. The international payment system is a public good in a similar way that dollar and euro funding is a public good. As part of the sanction regime, Russian banks and companies have been denied access to these public goods."
"It may still be early to expect Russia to be barred from the SWIFT system. However, as financial channels are brought to bear, this cannot be ruled out indefinitely, especially if the confrontation escalates."