Solution will be found for latest EU sanctions against financial messaging system; will continue operating in 'proper mode' - Russian Central Bank

ST. PETERSBURG. June 26 (Interfax) - A solution will be found to resolve the situation regarding the latest European Union sanctions that hinder the operations of the financial messaging system of the Bank of Russia (SPFS), Central Bank First Deputy Governor Vladimir Chistyukhin said.

The EU as of June 25 has banned EU banks operating outside Russia from using SPFS, Russia's version of SWIFT, as part of the 14th package of sanctions imposed against Russia. SPFS ensures uninterrupted transfers of financial messages both within Russia and abroad. European organizations are also banned from effecting transactions with entities using SPFS outside Russia.

"Pressure from sanctions is a fact that will need to be taken into account in the practical activities of the Russian infrastructure, specifically the financial messaging system," Chistyukhin told journalists on the sidelines of the St. Petersburg International Legal Forum in response to questions about the consequences of the latest EU sanctions.

"Meantime, we believe that we will find a way out of the current situation with our partners in order to continue the functioning of the system in the proper mode," Chistyukhin said.

SPFS appeared in response to the first wave of sanctions against Russia in 2014. There were 556 organizations utilizing SPFS at the end of 2023, and over 25% of them, 159, were non-residents from 20 countries. The Central Bank previously published a detailed list of SPFS participants on its website, but then removed it from public view in April 2022 following a new wave of sanctions, including against the largest Russian banks.