BREAKING: Biden uses 'financial nuclear option' and REMOVES Russian banks from SWIFT network and imposes restrictions on Russian Central Bank as they tighten financial sanctions on Moscow over Ukraine
- The West pledged to isolate Russia from world markets by removing banks from the SWIFT network
- The US, European Commission, France, Germany, Italy, the UK, and Canada made the move on Saturday
- 'We will hold Russia to account and collectively ensure that this war is a strategic failure for Putin,' they said
- Ukraine has been demanding the move for days as it battles about 75,000 invading Russian troops
- Ursula von der Leyen, president of the European Commission, said it would stop Putin using his 'war chest.'
- Earlier a Pentagon official said the US was sending more Javelin anti-tank missiles to Ukraine
By ROB CRILLY, SENIOR U.S. POLITICAL REPORTER
PUBLISHED: 09:40 AEDT, 27 February 2022 | UPDATED: 09:50 AEDT, 27 February 2022
The US and its Western allies announced on Saturday they would move to exclude key Russian banks from the international SWIFT banking network and impose restrictions on the Russian Central Bank.
The moves will be welcomed in Ukraine, which saw isolating Russian banks as a key way to choke off financing and punish Moscow for its invasion.
The announcement came as Russian troops battled Ukrainian forces on the outskirts of the capital Kyiv.
Officials said cutting Russian banks off the system will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports.
Ursula von der Leyen, president of the European Commission, said it would prevent Putin using his 'war chest.'
In a joint statement, the US, European Commission, France, Germany, Italy, the United Kingdom, and Canada said: 'We will hold Russia to account and collectively ensure that this war is a strategic failure for Putin.'
A raft of measures will be implemented in the coming days, they said.
'First, we commit to ensuring that selected Russian banks are removed from the SWIFT messaging system. This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally,' they continued.
'Second, we commit 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.'
Russian troops have made rapid advances since they invaded early on Thursday morning.
Skirmishes were reported around the Ukrainian capital Kyiv, as local forces tried to hold off Russian troops.
A Pentagon official said half of the 150,000 Russian troops deployed to the Ukrainian border had no entered the country.
And the Kremlin ordered its military to ramp up the Ukraine offensive ‘from all directions’ – as ordinary Russians started to express their horror at the war being waged in their name.
Earlier officials said that Javelin anti-tank missiles were part of a new $350 million package of military hardware being sent to help Ukrainian troops hold off invading Russian forces.
Watch How Russia’s Military Attack on Ukraine Unfolded | WSJ
https://www.youtube.com/watch?v=Gygb1sEah1U
Ukrainian tanks on the move ahead of an attack in Lugansk region on February 26, 2022.
President Biden authorized the new package on Friday evening, as Russian troops closed on the Ukrainian capital Kyiv
It came two days after Ukraine's defense minister made a direct appeal to Congress.
Alexey Reznikov said: 'We need as much Stinger and anti-tank weapons as possible.
'In order to provide for reliable procurement of equipment, you may deliver it to Poland. From there we will transport them across the land and quickly saturate our defense.'
Javelins are used by small, mobile units to destroy tanks from a distance and are seen by Kyiv as one of their best hopes for slowing the advance.
Although Ukrainian airspace is contested, the official said the Pentagon was continuing to find routes in to the country.
'We’re going to look for additional venues to do that, especially now given that the president has authorized another $350 million worth of assistance,' the official said. 'We’re going to do everything we can to get that into the hands of the Ukrainians.'
The top Republican on the House Armed Services Committee said Ukraine needed Stingers.
'I hope the military aid package announced by the administration today includes these Stingers,' said Rep. Mike Rogers.
'The Ukrainians are fighting like hell to save their country and the administration should have sent this lethal aid weeks ago.'
The military assistance was authorized by President Joe Biden a day earlier, bringing the total amount of help to $1 billion over the past year.
Pentagon spokesman John Kirby said it would come from U.S. inventories 'including anti-armor, small arms and various munitions, body armor, and related equipment in support of Ukraine’s front-line defenders facing down Russia’s unprovoked attack.'
Ukraine has been desperately asking for more Javelins as well as Stinger anti-aircraft missiles as its forces battle Russia's tanks, bombers, helicopters and missiles
A Pentagon official told reporters that Javelin anti-tank weapons were part of the package but declined to say whether Stingers were included, according to Defense News.
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The US and allies promise to remove Russian banks from SWIFT network