The new package of sanctions against Russia includes disconnecting 22 Russian banks from the international SWIFT system. Among key banks, only Gazprombank remains due to its function in processing payments for energy supplies to European countries such as Slovakia, Turkey, and Hungary.
Other banks were disconnected over suspected transactions related to military or dual-use purposes. Disconnection from SWIFT fully blocks the external economic activity of banks, as Russia’s alternative payment system is not utilized by other countries. The Chinese payment system, in theory, could help bypass sanctions, but the US and EU warned it could also face restrictions if used for sanctioned Russian entities.
Faced with sanctions, Russian banks have increasingly used cryptocurrencies for settlements, leading to a reduction in gold reserves. Most national currency operations are active only with CIS countries. The Chinese yuan is becoming more common in settlements, but isolated Russian secondary banks remain on the periphery.
The prospect of de-dollarizing the global economy is promoted by Russia, yet BRICS countries mainly conduct settlements in yuan or other national currencies, with little use of the ruble. India and other beneficiaries of trade with Russia voiced criticism of the new EU sanctions but continue business, redirecting supplies and moving away from military contracts with Russia.
