RBC: EU allowed Rosselkhozbank to use fax and e-mail instead of SWIFT

Banks that are not subject to the blocking sanctions of the European Union (EU) have the right to use alternative methods to SWIFT for exchanging financial messages. Among these methods is sending a fax and e-mail messages, according to the EU clarification dated February 28. According to RBCthis may apply to Rosselkhozbank, which is disconnected from SWIFT, but is not under blocking sanctions.

According to the EU, alternative channels for receiving payment orders could be “non-specialized financial messaging services”. These include paper, fax, email. Banks not subject to sanctions can conduct transactions with European credit institutions for trade that is not affected by current restrictions on exports or imports, the EU explained.

SWIFT has not served Rosselkhozbank since June 14, 2022. In total, ten Russian banks have been disconnected from the international payment system, including Sberbank, VTB, Otkritie, Novikombank, Promsvyazbank, Rossiya, Sovcombank, VEB.RF state corporation and MKB. All of them are under blocking EU sanctions. November 2022 reportedthat the European Commission will consider lifting sanctions from Rosselkhozbank.

On February 25, Tinkoff Bank fell under EU sanctions. In a credit institution assuredthat the restrictions will not affect its operation. On February 26, Tinkoff Investments suspended trading in foreign securities and clients’ trading on the stock exchange in euros, and the next day, at the opening of trading on the Moscow Exchange, TCS Group receipts (Tinkoff’s parent structure) fell by 12.77%. On March 2, the Tinkoff app disappeared from the AppStore.

Details – in the publication “Kommersant” “Tinkoff Investments is looking for workarounds”.

Laura Keffer