EU's foreign policy chief says more Russian banks will be disconnected from the SWIFT payment system as Russia's Central Bank has already introduced a new payment system called "HELLO."

Iran PressEurope: Amidst the ongoing conflict in Ukraine, European Union (EU) High Representative for Foreign Affairs and Security Policy, Josep Borrel, warned that more Russian banks will be disconnected from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) payment system.

Speaking to reporters in Panama, Borrell informed this without sharing specific details: "I cannot disclose the names or the number of the financial institutions now. And in the energy sector, we are looking for measures that would significantly affect the import of Russian oil," he added, according to Sputnik.

Notably, SWIFT is used by different financial institutions to send and receive information, such as instructions for cross-border money transfers.

According to Borrel, the EU Political and Security Committee is working on the sixth package of monetary sanctions against the Kremlin and he hoped it could be agreed upon at the upcoming meeting of the Foreign Affairs Council. It was previously reported that the EU planned to impose a ban on Russian oil imports by the end of the year. The EU imposed five sets of sanctions against Russian individuals, organizations, the banking sector, and energy since the onset of the war on February 24.

Russia's Central Bank introduces new payment system called 'HELLO'

The Russian Central Bank's reserves were also impacted by embargoes as several Russian banks have been cut off from the SWIFT payment system. Last month, the Central Bank of Russia (CBR) registered a new payment system called HELLO to the national register of credit institutions amid mounting sanctions. 

The system's payment infrastructure services will be operated by the Russian commercial bank TransKapitalBank. The HELLO payment system is a collection of payment services and institutions that makes money transfers easier. 


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