German politician compares anti-Russian sanctions to atomic bomb
Suspending Russia from the banking network would be an atomic bomb for capital markets
Cutting Russia off from the international banking payment system SWIFT would have a serious impact on Western economies, according to the incoming leader of Germany’s conservative Christian Democratic Union (CDU), Friedrich Merz.
The politician stressed that the suspension of the system for Moscow “would basically break the back of international payment traffic,” damaging not only European-Russian trade in goods and services, but global trade as well.
“Calling SWIFT into question could be an atomic bomb for the capital markets and also for goods and services. We should leave SWIFT untouched,” Merz said, as quoted by DPA International News Service.
“I would see massive economic setbacks for our own economies if something like that happens. It would hit Russia, but we would be damaging ourselves considerably,” he warned.
The remarks come amid repeated threats from the US and its allies to introduce a wide set of punitive measures against Russia if the country’s troops invade Ukraine.
The new penalties are aimed at targeting Russian banks and the Russian sovereign wealth fund. They would also make it harder to convert rubles to foreign currencies, as well as seizing opportunities for investors to purchase Russian debt on the secondary market, and potentially disconnecting the country from the SWIFT banking network.
Merz’s warnings come ahead of German Foreign Minister Annalena Baerbock’s visit to Ukraine and Russia, which is scheduled for Monday and Tuesday.
Washington has repeatedly raised the issue of Russia’s intentions in relation to Ukraine over the past several months, while Moscow has denied all allegations of military planning and has vowed to respond in kind in the event of sanctions.
The politician stressed that the suspension of the system for Moscow “would basically break the back of international payment traffic,” damaging not only European-Russian trade in goods and services, but global trade as well.
“Calling SWIFT into question could be an atomic bomb for the capital markets and also for goods and services. We should leave SWIFT untouched,” Merz said, as quoted by DPA International News Service.
“I would see massive economic setbacks for our own economies if something like that happens. It would hit Russia, but we would be damaging ourselves considerably,” he warned.
The remarks come amid repeated threats from the US and its allies to introduce a wide set of punitive measures against Russia if the country’s troops invade Ukraine.
The new penalties are aimed at targeting Russian banks and the Russian sovereign wealth fund. They would also make it harder to convert rubles to foreign currencies, as well as seizing opportunities for investors to purchase Russian debt on the secondary market, and potentially disconnecting the country from the SWIFT banking network.
Merz’s warnings come ahead of German Foreign Minister Annalena Baerbock’s visit to Ukraine and Russia, which is scheduled for Monday and Tuesday.
Washington has repeatedly raised the issue of Russia’s intentions in relation to Ukraine over the past several months, while Moscow has denied all allegations of military planning and has vowed to respond in kind in the event of sanctions.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
