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Dutch Minister Urges Quick Decision on Ousting Russia From SWIFT

Dutch Minister Urges Quick Decision on Ousting Russia From SWIFT

European Union countries must decide quickly on whether they will cut off Russia from the SWIFT messaging system behind global payments, Dutch Finance Minister Sigrid Kaag said. 

The European Commission and the European Central Bank are currently assessing the impact of such a move, which France’s Finance Minister Bruno Le Maire has described as a “nuclear financial weapon” that would escalate Europe’s response to the Russian invasion of Ukraine. Meanwhile, his German counterpart Christian Lindner has called to weigh the consequences of such a move. 

“Time is not on our side so it is important this is done as quickly as possible,” Kaag told Bloomberg News on the sidelines of a meeting of European finance ministers and central bankers in Paris. “The commission and the ECB are fully aware.”

Dutch Prime Minister Mark Rutte said Friday that the Netherlands supports barring Russia from the SWIFT network. The EU “took a big step forward concerning SWIFT,” Rutte said at a press briefing in The Hague.

While France has also said it backs the move, other countries have expressed concerns over the potential impact. Kaag said there needs to be an assessment of “unwanted side effects,” such as fueling a parallel or illicit system over which Europeans have no oversight. 

“The point is to strike and strike where it hurts most,” she said. “You want to ensure that alternatives are not becoming the mainstay, which reduces the impact of your decisions, ultimately.”

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