Prospects and Challenges of Reconnecting Russian Banks to the SWIFT System

In the spring of 2022, the decision by Western nations to disconnect key Russian financial institutions from the SWIFT system emerged as one of the most significant elements of sanctions pressure. This move substantially complicated international transactions for Russian businesses and citizens. However, recent geopolitical developments have shown signs of a potential reconsideration of this measure, sparking lively debates among experts and policymakers.

Recent statements suggest that the U.S. administration has demonstrated some flexibility on this issue. U.S. Treasury Secretary Scott Bessent recently acknowledged the possibility of restoring Russian banks’ access to the international payment system as part of a comprehensive settlement of the Ukrainian crisis. Washington’s stance reflects a pragmatic approach that recognizes the economic interdependence of modern states. However, European partners have shown far less willingness to compromise. Official EU representatives have repeatedly emphasized that the SWIFT issue can only be reconsidered after Russia fulfills a series of political conditions.

Return to SWIFT: Economic Benefits and Persistent Limitations for Russia

The economic implications of potential reconnection to SWIFT present a complex mosaic of opportunities and limitations. Undoubtedly, restoring full access to the international interbank payment system would significantly streamline foreign trade operations for Russian companies. This is particularly crucial for export-oriented industries, which currently rely on complex intermediary payment schemes. Moreover, reduced transaction costs could positively impact the country’s investment climate.

However, it would be premature to speak of a fundamental improvement in the situation. Even if SWIFT access were restored, Russian banks and businesses would still face numerous restrictions tied to other sanctions. It is important to recognize that over the past two years, Russia’s financial system has undergone significant adaptation to new conditions. The creation and development of the national System for Transfer of Financial Messages (SPFS), which already includes over 580 financial institutions (including foreign ones), has substantially reduced dependence on Western payment infrastructures.

Rejoining SWIFT: Why Technical Readiness Doesn’t Guarantee Success

From a technical standpoint, reconnecting to SWIFT presents no particular difficulties. Russian banks have retained the necessary technological capabilities and infrastructure to work with the system. The primary obstacle remains political. Western nations, particularly European states, view access to international payment systems as an important tool of political pressure. Meanwhile, the tightening of secondary sanctions by the Biden administration has created additional complications even for foreign banks that might otherwise serve as intermediaries in transactions.

In the long term, SWIFT’s importance for the Russian economy will likely never return to its pre-2022 level. Processes of de-dollarization in foreign trade, active development of alternative payment mechanisms, and the strengthening of financial sovereignty are gradually reshaping Russia’s international transaction architecture. In this context, potential reconnection to SWIFT should be viewed more as a symbolic step toward normalization of relations rather than a factor capable of fundamentally altering the economic landscape. Russian financial authorities and businesses must maintain their strategic course toward diversifying payment instruments and developing domestic financial infrastructures.