To create a complete replacement for the SWIFT of today is hardly possible, said the head of the Ministry of Finance of the Russian Federation

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Создать полноценную замену SWIFT сегодня вряд ли возможно, сказал глава Минфина РФ

Creating a fully-fledged alternatives to the international system of exchange of banking information SWIFT today is unlikely, said the first Vice Premier, Finance Minister Anton Siluanov in interview to TV channel “Russia-24”.

“We have created our own system of notification of payment of payment orders, which operates in Russia. I think that it will continue to grow as an alternative to SWIFT in Russia. Of course, to create a complete system that will replace SWIFT, today is hardly possible, but let’s see what will happen next”, he said.

According to Siluanov, the impact of policy on decisions of financial institutions encouraged countries to develop payments in national currencies, as well as to create an alternative to the International monetary Fund (IMF) the international institutions. As an example, he cited the Eurasian development Bank (EDB), whose members make decisions about the support of certain national markets, investment projects within the Eurasian partnership, reports TASS.

“Settlement with our European partners we have more and more carried out in euros and rubles. The calculations in the post-Soviet space, the Eurasian [economic] Union, mainly in rubles, in national currencies. This is due to the fact that all those limitations, that is, they are not good for the dollar, and to blame those countries that impose such restrictions,” – said the first Deputy Prime Minister.

According to Siluanov, the Russian authorities “will continue to develop payments in national currencies, primarily the Russian ruble and the Chinese yuan”. The Vice-Premier added that China also created alternative financial institutions: Asian development Bank infrastructure investment, the New development Bank (NDB, the BRICS Bank). “That is, create financial institutions, which would have the greater resources and which could partially replace the functionality that you have with the world Bank, the International monetary Fund. Our Chinese partners see that not always work for these global institutions and create their own”, – concluded Siluanov.

The possibility of off Russia from SWIFT is discussed in 2014, when it was introduced the first anti-Russian sanctions in connection with the annexation of Crimea and support for Pro-Russian armed groups in Ukraine under the flags of the DNI and LC. Then, the European Parliament adopted a resolution which, in particular, has urged to exclude Russia from the system of international payments SWIFT. However, in SWIFT similar recommendations are found violating law and damaging the company.

As an alternative channel of interbank cooperation, Russia has established a System of transmission of financial messages (SPFS). The Central Bank reported that the system has joined some of the foreign participants of the financial market. When connecting to SPFS foreign counterparties will be able to interact with Russian companies, targeted by sanctions, say the creators of this financial system.

In February 2018, Arkady Dvorkovich, who was then a post of the first Deputy Prime Minister, was reported about readiness of Russian banks off from SWIFT. “Of course it’s upsetting, because can make the job of companies, banks will slow down this job, will cause the need to use obsolete technologies of information transfer and calculations, – said Dvorkovich. – However, due to the fact that this threat has repeatedly brought our financial institutions and companies are morally and technically ready.”

According to the Vice Prime Minister, any problem, including disconnecting from the global financial system, the government is ready to “celebrate with dignity”.

Dvorkovich stressed that such measures in the tightening of sanctions against Russia will bring harm not only Russian economy, but also companies in Europe and the United States. So he called off from SWIFT crazy act on the part of partners.

Earlier, in late January, at the international economic forum in Davos, Dvorkovich said that “you can work without a SWIFT”. At the same time, he stressed, the government hopes that disconnecting from SWIFT will not be because they are “quite aggressive”. If it still happens in Russia, according to Dvorkovich, “there is a possible retaliatory steps.”

SWIFT (Society for Worldwide Interbank Financial Telecommunication) – an international system of interbank communications. It is connected to more than 11 thousand financial institutions in more than 200 countries. In Russia, the community counts more than 600 participants, including the Bank of Russia and the largest banks. The operator of the system registered in Belgium.

 

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