US mulls China sanctions if Beijing tries to save Russian economy despite SWIFT ban
Amid a wave of international sanctions against Russia over the Kremlin’s ill-fated March 8 invasion of Ukraine, US Senator from Florida Marco Rubio said he was considering legislation to sanction China if it was helping Moscow circumvent SWIFT sanctions. Speaking to microblogging site Twitter, the senator vouched for having put the Xi Jinping-led regime on trial if it helped Russia use Beijing’s Cross-Border International Payments System (CIPS) to benefit from SWIFT and circumvent the sanctions imposed on the country led by Vladimir Putin. .
Rubio said, “I’m working on legislation that would impose sanctions on China if we try to use its Cross-Border International Payments System (CIPS) to help Russia circumvent SWIFT sanctions.”
—Marco Rubio (@marcorubio) March 8, 2022
To reduce Russia’s profitability on the world market and make it more difficult for Beijing, several countries, mainly the West, have ordered sanctions against Moscow. Now, CIPS would rely heavily on SWIFT’s financial services and includes around 1,100 financial institutions from 100 countries, including many Chinese and Russian entities. By removing Russia’s private banks from the SWIFT payment network, the international domain for global financial transactions that the US and EU say will cripple the Russian economy.
The situation is relevant as China is Russia’s biggest trading partner, however, a senior official in the administration led by Joe Biden has said that China will not come to the rescue of Russia after the series of financial sanctions. Western forces against Moscow for launching an assault on Ukraine.
New sanctions against Russia in preparation
European Commission President Ursula von der Leyen met Italian Prime Minister Mario Draghi on Monday to discuss the new sanctions package they are working on. In a statement, in view of the Kremlin’s “recklessness”, Leyen informed that the Commission and Italy were looking forward to imposing a new battery of sanctions to ensure that the effect of the sanctions was “maximised”. .
“We are going to discuss the situation in Ukraine, the war waged by Russian President Vladimir Putin and the new sanctions implementation package that we are working on. As you know, we already had three tough sanctions packages, but now we have to make sure that there are no loopholes and that the effect of the sanctions is maximized. The sanctions in place are really biting as we see the downward turmoil in the Russian economy. But considering of the Kremlin’s disregard for civilians, including women, children, men, we are also working on new sanctions,” said the President of the European Commission.