The United Kingdom will push the European Union this weekend to consider the most punitive sanctions yet against Russia for its involvement in escalating the crisis in Ukraine.
According to Bloomberg, the U.K. plans to propose blocking Russia from the SWIFT banking transaction system, a move analysts say would effectively cut off Russian businesses from the rest of the world’s financial system.
U.K. Prime Minister David Cameron will put forward the proposal during a meeting with E.U. leaders in Brussels on Saturday.
“This would be a major escalation of the sanctions. Most international payments flow through SWIFT. Banning Russian banks and companies from SWIFT would effectively cut off Russian businesses from the rest of world,” said Bruce Johnston, a London-based analyst at Morgan, Lewis & Bockius.
“It would also have a major impact on European businesses who need to paid by Russians, and want to consume Russian energy.”
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