- The US, EU, UK, and Canada agreed Saturday to remove select Russian banks from SWIFT.
- SWIFT is a global financial messaging system, and Saturday's announcement could prove disastrous for Russia.
- A joint statement on Saturday said the move was intended to "ensure that this war is a strategic failure for Putin."
Western nations announced Saturday that select Russian banks will be removed from the SWIFT banking system, according to a joint statement released that evening that vowed to "collectively ensure that this war is a strategic failure for Putin."
The agreement — struck by the United States, the European Union, Canada, and the United Kingdom — committed to disconnecting "selected Russian banks" from the international payment system.
The agreement also committed to "imposing restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions."
"As Russian forces unleash their assault on Kyiv and other Ukrainian cities, we are resolved to continue imposing costs on Russia that will further isolate Russia from the international financial system and our economies," the statement said.
SWIFT, a Belgian communications system, was launched in 1973 to serve as a neutral platform for banks to chat about financial transfers, transactions, and trades. Removing Russia from the system could be economically catastrophic for the nation.
SWIFT links more than 11,000 financial institutions in more than 200 countries and territories. It also hosted 42 million messages a day on average in 2021, according to Bloomberg.
Saturday's announcement marked a shift in opinion for several nations, including Germany, whose foreign minister said as recently as Friday that she did not believe a ban was the best course of action.
Saturday's statement said the new measures will begin "within the coming days."
"As Russian forces unleash their assault on Kyiv and other Ukrainian cities, we are resolved to continue imposing costs on Russia that will further isolate Russia from the international financial system and our economies," the statement said.
This is a developing story. Check back for updates.