As Russian banks closed down both ATMs and then, later, open market trading, to avoid or contain the fallout from the Russian incursion into Ukraine, it's becoming increasingly apparent that the West doesn't have the right tools to sanction Russia - not that they could even if they did.
Now, a German economy ministry official has confirmed that despite the sweeping sanctions Imposed on Russia, including the removal of it banks from the SWIFT system, that German companies will still be able to find ways to pay their energy bills to the Russians to keep the gas flowing.
There are still channels by which Germany's gas bills can be paid despite the exclusion of Russia from the main global payments system SWIFT, an economy ministry spokesperson said on Monday.
At the same time, it is impossible to estimate the total impact of sanctions against Russia on the German economy at the moment, the spokesperson said.
Still, the intensity of the panic and the dramatic scenes from the front have been enough to send the price of natural gas in Europe to soar more than 40%. This isn't a surprise: Putin and Russia have been well-prepared for the international sanctions and have long been busy devising ways to circumvent them.
What's more, Russia's oil and gas resources are simply too tempting for buyers to turn down.
German foreign minister Annalena Baerbock: "We buy 50% of our #coal from Russia.
Monday, February 28, 2022
US, Germany Continue To Allow Gas Transactions With Russia Despite SWIFT Ban
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