"The Cards Of All Belarusian Banks Will Stop Working In The EU"

• 12.06.2025, 8:20

It will not be possible to transfer money through systems like Paysend.

The European Commission has prepared a new 18th package of sanctions against Russia and Belarus in connection with the aggression against Ukraine. Among the sanctions proposals there is a complete ban on transactions with Belarusian banking structures.

The 18th package of sanctions should be agreed by all members of the European Union, its adoption is expected in June.

"Filin" learned from economist Dmitry Kruk about the consequences of the possible decision.

- Currently, four Belarusian banks are disconnected from SWIFT. Now they propose to introduce a complete ban on transactions with Belarusian banking structures. What does this mean?

- We should immediately note that the document has not been adopted yet. If it is adopted in this form, it will mean a complete separation of Belarusian banks from the European, even more likely from the global banking system.

And those windows in the system of settlements, in the movement of money, which now still exist, will be closed.

- Wouldn't the transition of Belarusian banks to the "Russian substitute of SWIFT" - the SPFS system - help in this case?

- Belarusian banks still have transactions with European counterparties on a very limited scale. Both private and legal persons can still transfer money to accounts in European banks through several banks.

-This allows servicing trade flows that still legally take place between Belarus and the EU. This possibility will disappear.

The fact that Belarusian banks have switched to the SPFS in no way gives them the opportunity to conduct transactions with Western countries. Financial service with them, where it is still possible, goes through SWIFT.

And the banks that have access to SWIFT, to correspondent accounts with European banks, are very important and valuable for Belarusian business.

At the same time, if potentially such an opportunity disappears, it will certainly be unpleasant, but I would not say that it is tragic. Because with the help of various bypass intermediary chains, through Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, Georgia, Turkey and other countries, with the help of the same SPFS, it is possible to bring money to the final beneficiary.

That is, first the money will be sent to one of these countries, and from there it will continue to move on behalf of another company in the direction of the final beneficiary.

In 2020 or 2022, the disconnection of SWIFT could really paralyze the financial system for a period of time in terms of servicing foreign payments.

But now everyone is preventively prepared for this shock. I think that all banks allow this possibility, so a complete ban on transactions is unlikely to cause a collapse.

- Will this possible ban somehow affect ordinary citizens?

- I have already noted that today there is still an opportunity, albeit small, to transfer money to Western countries to bank accounts. For example, you want to send money to your account or your relative's account, or receive money.

Send a SWIFT-transfer, say, for the purchase of a car to a foreign firm, etc. These are the kind of transfers that will close down altogether. People will have to look for workarounds.

The situation with card systems is a bit more complicated.

But if there is a complete termination of all correspondent relations with Western banks and separation from SWIFT, with a very high probability, it will affect the card capabilities.

Most likely, it will be impossible to transfer money through systems like Paysend. In addition, the cards of not only some Belarusian banks, but all of them, will no longer work in Western countries and the EU.