Major Russian banks Sberbank and Gazprombank look set to escape being cut off from the Swift messaging network under proposals being discussed by EU member states that are likely to ban seven Russian banks from the global messaging system over which letter of credit (L/C), guarantees and other transactions are routinely managed (DC World News, 28 February 2022).

Sberbank is Russia's largest lender while Gazprombank is a key bank for Russia's energy conglomerates selling oil and gas into European markets.

List of seven banks

If the EU goes ahead with the list of seven banks it proposed banning on Tuesday, Russia's second-largest bank, VTB Bank would lose access to the global messaging platform.

Other banks said to be on the EU list - which may differ when it is officially announced - include Vnesheconombank (VEB), Rossiya Bank, Sovcombank, Bank Otkritie, Novikombank and Promsvyazbank.

Swift has said it will comply with applicable sanctions laws issued following the commitment by the European Commission, France, Germany, Italy, the UK, Canada to remove selected Russian banks from the platform (DC World News, 1 March 2022)

Fluid situation

Several countries, notably Germany which imports substantial quantities of Russian gas, have argued that some banks should remain connected to Swift to help Europe pay for essential energy imports from Russia.

Poland, which shares a 500-kilometre border with Ukraine and where Polish citizens are keen to show their solidarity with Ukrainian refugees struggling to cross the border, argued that the EU should delist all Russian banks.

Other EU countries have not been convinced of the Polish argument but have promised to continue discussions to add other banks, possibly including Belarusian banks, in the coming days.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.