EU allows Russian Rosselkhozbank to transfer funds abroad

The European Union has allowed the Russian bank Rosselkhozbank, which is not subject to blocking sanctions but is disconnected from SWIFT, to use fax, e-mail, paper, etc. for transfers.

Source. RBC writes about this with reference to the EU's explanation of February 28.

In mid-June, the EU disconnected Rosselkhozbank from SWIFT. Nevertheless, in January 2023, the bank's website stated that it continued to make foreign currency transfers both in Russia and abroad.

The EU document suggests that the bank can conduct transactions with European banks for trade that is not subject to export or import restrictions.

In mid-November, Russia demanded that sanctions against Rosselkhozbank be lifted in exchange for an extension of the agreement on the export of Ukrainian grain.

Later, European Commission spokesman Peter Stano said that EU countries would discuss lifting sanctions against Rosselkhozbank and reconnecting it to the SWIFT system as part of the grain deal.

After that, the European Union exempted several transactions from sanctions, including the supply of fertilizers and food from Russia to Europe. However, the EU did not ease sanctions on banks. Even if a bank serviced a deal to supply food to Europe, it could not make a SWIFT transfer.

Instead of reconnecting the Russian bank to SWIFT, the US authorities suggested that the bank restore direct correspondent relations with American banks, the Financial Times reported.

SWIFT is a system for exchanging financial information between banks for cross-border transfers that is used worldwide. It is connected to 11 thousand organizations.

Background. Earlier it was reported that the EU is ready to lift sanctions against Rosselkhozbank at the request of Russia and that the strict position of the US and EU on sanctions against this bank has softened.