Ukraine Russia War 2022: Russian Economy Collapse 2022, Countries Excluding Russian Banks from SWIFT

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Economy Collapse after Ukraine Russia War 2022
Economy Collapse after Ukraine Russia War 2022

Ukraine Russia War 2022

What’s lately happening in the war between Russia Ukraine? Russia’s war on Ukraine squeezes the global economy. Recently, multiple sanctions have been imposed on Russia over Moscow’s invasion of Ukraine. The US and European union decided to partially exercise the nuclear weapon as far as economic sanctions are concerned; cutting off a number of Russian banks from the international payment gateway, SWIFT. Russian banks have become an undesirable place to keep money after it’s been kicked off from SWIFT.

USA, European union and other major financial centres have started isolating Russia and these moves sent the rouble tumbling. The Russian rouble tumbled to a record low against the dollar on Monday. The rouble fell as far as 119.50 per dollar in Asian trading, a record low for the currency and a steep deep drop of 30% from Friday’s close. It subsequently recovered to around 110 per dollar.

Assests at Russia’s bank

Not only Russia has been cut off from the main international payment gateway SWIFT but US has also cut off Russia biggest Bank Sberbank and it’s 25 subsidiaries from US financial system. The sanctions restrict Sberbank’s access to the US dollar transaction. Along with that the US and the UK have Frozen assests at Russia’s second largest bank, which is highly exposed to Western financial systems. This means the bank and it’s subsidiaries will not be able to do any business in the UK or with their nationals.

Read More: Russian Invasion of Ukraine 2022 Risks Global Economic Recovery

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