US, Germany Continue To Allow Gas Transactions With Russia Despite SWIFT Ban

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.

The problem, as we have said many times before, boils down to Russia’s control over Europe’s energy supplies. But even as a growing number of Russian oligarchs release messages claiming that their sympathies lie with the Ukrainians (not that any of them have actually committed to doing anything that might undermine the war effort), Russia’s position remains unassailable.

And 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.

Here’s more from a brief Reuters note on the subject”

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.

A few hours later, the US jumped on that bandwagon. 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%.- READ MORE