Moscow– Russia is currently occupying the forefront of the countries that were imposed on sanctions, which began for the first time in 2014 by the Western system after the inclusion of the Crimea after a popular referendum that rolled its geopolitical effects and led in February 2022 to the outbreak of the Russian war on Ukraine, followed directly by the “last call” between Russia and the international financial correspondence system Swift.
The separation of Russian banks from the “Swift” system was one of the most western punitive measures that had the most negative impact on the Russian economy.
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The Russian version of “Swift” was operated for the first time in December 2014 as a channel between banks to transfer electronic messages on financial transactions, in an attempt to secure a financial services system that ensures the transfer of financial messages without interruption.
The share of local transfers via “Swift” decreased at the beginning of 2022 from 80% to 20%, prompting the Russian Central Bank at the time to transfer all local transfers to “SBFS” and its similar Russian counterparts. Currently, the Russian financial messages system for the Bank of Russia is the only counterpart of the “Swift” system.
By the end of 2024, the number of participants in the transfer system of financial messages to Russia increased to 584 after their number in the previous year was 556.
The European Union believes that the Russian financial correspondence system “SBFS” is actively used to circumvent the sanctions, and that its use increased 3 times in 2023 compared to 2022, and is used by foreign banks in 20 countries, including China, Belarus, Iran, Armenia, Tajikistan and Kazakhstan.
In response, the European Union prohibited the use of the Russian Central Bank’s financial messages system on its non -operating companies in Russia, within the framework of the 14th package of sanctions against Moscow in an additional step to tighten financial pressure on it.
Currently, 177 financial institutions from 24 countries participate in the Russian financial messages system, and Ala Bakina, head of the national payment system at the Russian Central Bank, confirms.
Bakina explained, in a speech to the Duma Council (the lower room of the Russian parliament), that those who called it friendly countries expressed interest in the Russian financial correspondence system despite the current circumstances.
What is the mechanism of work in “SBFS”?
The financial expert at the “immediate” Arkadi Tolov Bank explains that the alternative Russian system ensures the transfer of financial messages without interruption, both inside or outside Russia. In this case, settlements are made between credit institutions within the framework of correspondence relations.
According to what he says to Al Jazeera Net, the Russian system is characterized by the ability to cover all legal entities without restrictions, and is implementing the tasks of the Central Bank in providing services to transfer financial messages, including transferring messages in coordination for users and controlling financial messages in the form of “Swift”, and giving the participant the ability to determine the list of the opposite parties and the types of financial messages he receives from them.
What countries deal with Russia?
According to him, the Russian financial correspondence system works with other countries as a backup channel to exchange financial messages with them and an alternative to the Swift system in cases where this is an economic justification.
He continues that the availability of financial messages services to bank customers from companies is compatible with international practices, and these services are provided by the central bank on a contractual basis, which makes the process of joining other countries to the SBFS system is a more smooth and practical issue.
With his indication that – for political reasons – there is no official and final list in these countries, the development of a financial infrastructure to support trade and economic growth between the BRICS countries depends on national currencies, that would secure alternative international payment systems that help – including – to overcome American financial oversight.
What are the disadvantages of the SBFS system?
However, the Russian version suffers from a number of defects and problems, says economist Victor Lachon, as the financial correspondence system – according to it – needs more development in terms of jobs, as it is still late for the “Swift” system.
In this context, it refers to the small number of non -resident clients connected to the Russian banking correspondence system, which is the reason that the function of payments across the border is still practically required, which makes this system in its current version costly and takes a long time, and therefore it is not suitable for all banks.
Lashon believes that additional measures should be taken “at the state level” so that he can address the defects that prevent it from being an absolute counterpart of the “Swift” system.
Will Russia completely abandon “Swift”?
In the opinion of the spokesman, the re -linking of Russian banks to the “Swift” system depends on the implementation of the understandings reached during the recent Russian -American negotiations in Riyadh.
He adds that until now it has been agreed to raise the restrictions imposed on the Bank of Rosselilkuspank and other financial institutions participating in international trade in food and fertilizers.
According to him, sanctions on the producing and exporting companies of food and fertilizers, insurance companies, and marine ships operating in this sector should also be lifted, which Russia has interviewed to ensure the safety of navigation in the Black Sea.
