icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Strategic Russian firm dumps SWIFT in favor of domestic bank transfer alternative

Strategic Russian firm dumps SWIFT in favor of domestic bank transfer alternative
Russian state tech giant Rostec will use Russia’s analogue of SWIFT interbank cash transfer services, the company said in a press release.

The tech firm will connect to the Russian system for transfer of financial messages (SPFS) to make its payments safer. “The digital infrastructure will help to exchange data in encrypted mode, which reduces the risk of external intrusion into the system and the likelihood of hacker attacks,” Rostec said.

Rostec was established in late 2007 to consolidate strategically important Russian companies. It has divisions in aircraft, electronics, and armaments. It unites companies like Russian Helicopters, Kalashnikov Concern, and Rosoboronexport.

The head of Rostec, Igor Zavyalov, said that the transition to a new system will reduce dependence on foreign services and will provide an opportunity to transfer information without using the capacities of foreign providers.

Last month, another Russian state-owned firm, global oil giant Rosneft, announced it had tested the SPFS in December with the help of the country's third largest lender, Gazprombank.

The potential exclusion of Russia from SWIFT has worried the country’s banks since 2014, when the EU and the US introduced the first round of international sanctions against Moscow over alleged involvement in the Ukraine crisis and the reunification with Crimea. However, SWIFT itself has fended off such talks.

In 2017, the head of the Central Bank, Elvira Nabiullina, said at a meeting with President Vladimir Putin that Russia is ready for disconnection from SWIFT.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts