HNewsWire- In the wake of Russian banks' decision to shut down ATMs and, later, open market trading in order to avoid or contain the fallout from Russia's incursion into Ukraine, it has become increasingly clear that Western governments lack the necessary tools to sanction Russia - and that they would be unable to do so even if they had the means to do so.

As we have stated several times before, the root of the problem is Russia's stranglehold over Europe's energy sources. Russia's stance, however, remains unchallengeable, even as an increasing number of Russian oligarchs issue statements saying that their sympathies lay with the Ukrainians (none of them, however, have really committed to doing anything that may harm the war effort).

The German economics ministry has stated that, despite the broad sanctions against Russia, which include the expulsion of its banks from the SWIFT system, German firms would still be able to find methods to pay their energy invoices to the Russians, allowing gas to continue flowing into Europe.

For further information, see a quick Reuters report on the matter."

Although Russia was excluded from the primary global payments system SWIFT, a representative for the German economics ministry said on Monday that there are still avenues through which Germany's natural gas bills may be paid.

At the same time, according to the spokeswoman, it is hard to predict the complete impact of sanctions on Russia on the German economy at this time.

The United States of America got on that bandwagon a few hours later.

Yet, the intensity of the terror and the dramatic sights from the front have been enough to cause the price of natural gas in Europe to rise by more than 40 percent in a short period of time.

This should come as no surprise, since Putin and Russia have been well-prepared for international sanctions and have been hard at work researching methods to get around them for some time. Furthermore, the oil and gas resources of Russia are simply too enticing for investors to pass up on them.

According to our most current report, which was published on Saturday evening, the United States and its European allies have reached an agreement on the following issues towards Russia:

Ensure that "selected Russian banks" are withdrawn from the SWIFT messaging system by making the following commitment: "This will ensure that these banks are cut off from the international financial system and will have a negative impact on their capacity to conduct business internationally.

Declare a commitment to adopting "restrictive measures that will prohibit the Russian Central Bank from using its overseas reserves in a manner that will undermine the impact of our sanctions."

Declare a commitment to "acting against the people and entities who facilitate the war in Ukraine" by adopting legislation that restricts the sale of citizenship, also known as golden passports, which allow wealthy Russians with ties to the Russian government to become citizens. Golden passports allow wealthy Russians with ties to the Russian government to become citizens.

Dedicate yourself to establishing "a transatlantic task force that will ensure the successful execution of our financial sanctions by locating and freezing the assets of sanctioned persons and corporations that exist in our respective jurisdictions."
Increasing the intensity of or improving coordination in the fight against misinformation and other types of hybrid warfare.

As well, she took a few potshots at the Russian central bank.

German nuclear scientists and their efforts to build nuclear power plants would not be in this horrible position today - where they must choose between purchasing Russian energy supplies or letting their populace to freeze - if the country had continued to support them. Instead, German Chancellor Angela Merkel has decommissioned nuclear power stations, reducing the country's reliance on Russian energy supplies. It appears that she was motivated by political considerations.

However, the timing of this decision is already proving to be a hindrance. One Twitter user put it this way:

For those who don't know, the Society for Worldwide Interbank Financial Telecommunication, often known as SWIFT, is the financial-messaging infrastructure that connects institutions all over the world. The Belgian-based system, which is managed by its member banks, handles millions of payment instructions every day from more than 200 nations and territories, as well as 11,000 financial institutions worldwide. Iran and North Korea are cut off from the rest of the world. However, despite its enormous power, the truth remains that it is still a messaging service at its core. Its financial systems are completely devoid of money.

What is the likelihood that this action would hasten a global financial tilt toward China? Yes, given the moderate use of the yuan compared to China's prominence in the global economy, but the consequences of this action in the global financial sector have not yet been completely recognized. Only if a global financial transaction system is genuinely global and far-reaching will it continue to be the unchallenged leader in the field. Although there is no doubt that this policy will have a detrimental impact on Russia, the long-term consequences of this decision must be taken into account.

Finally, as a result of the United States' crackdown, Russia and China are now in command of their own SWIFT-like messaging facilities that exclude the United States, which was formerly one of Washington's greatest concerns.

Only three countries have been banned from SWIFT. Iran, since 2012, North Korea and now Russia, albeit partially. Oil and gas exports as well as other key commodities remain in the system.

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