US Treasury Secretary Bessent hints at SWIFT reentry for Russia

US Treasury Secretary Scott Bessent indicated on March 26 that the possibility of allowing Russian banks to rejoin the SWIFT international payment messaging system could be on the table, as negotiations continue regarding an end to the war in Ukraine. However, he emphasised that the White House would require backing from Europe to reintegrate Russia into the system.

“There would be a long discussion about many things in terms of the proper way to bring Russia back into the international system,” Bessent told Fox News anchor Martha MacCallum. “But I think this is premature to discuss the terms of a deal before we have a deal.”

The Biden administration played a key role in pushing to remove several of Russia’s largest banks from SWIFT following the invasion of Ukraine in early 2022. The SWIFT system allows financial institutions worldwide to exchange transaction information.

Russia has been lobbying for one of its major banks, Rosselkhozbank, to be reconnected to SWIFT, proposing it as part of a deal to implement a ceasefire in the Black Sea.

“I think everything is on the table,” Bessent remarked. “And as you mentioned, part of the national security effort that Treasury does is through the financial operations, is through our sanctions, is through sanctioning individuals, banks or countries.”

However, any decision to reinstate Russian banks would require approval from the European Union, which controls key institutions overseeing the SWIFT system. According to Anitta Hipper, a European Commission spokesperson for foreign affairs, lifting sanctions or allowing Russian banks back into SWIFT would only be considered if Russia meets certain conditions.

“The end of the Russian unprovoked and unjustified aggression in Ukraine and unconditional withdrawal of all Russian military forces from the entire territory of Ukraine would be one of the main preconditions to amend or lift sanctions,” Hipper told POLITICO.

Bessent also expressed hope that the White House and Kyiv would soon finalise the long-awaited minerals agreement. Ukrainian negotiators are currently reviewing the completed document, and Bessent expects that it will be signed swiftly.

“I’m sure that we will move along and get this signed quickly,” he said.

By Vugar Khalilov