Under a new set of sanctions approved by European Union officials, Sberbank, the Russian banking giant, has been officially disconnected from the SWIFT financial messaging system.

European Council chief Charles Michel said, “This sanctions package includes other hard-hitting measures: de-Swifting the largest Russian bank Sberbank.” 

in addition, the package bans three Russian state-owned broadcasters, and places additional sanctions on individuals who are accused of war crimes in Ukraine.

The effects of being disconnected from the SWIFT system will likely be minimal, as previous sanctions had already severely restricted international settlements by Russian banks. These sanctions are not expected to affect domestic operations of the bank.

Sberbank issued a statement in which it said, “Sberbank is operating as normal. The main restrictions are already in place. Disconnecting from SWIFT does not change the current situation in international settlements. Domestic transactions do not depend on SWIFT and will be carried out by the bank in the standard mode.”

In addition, Russia had already set up an alternative to the SWIFT system, the System for Transfer of Financial Messages (SPFS). Russian Central Bank governor Elvira Nabiullina had noted in April that almost all Russian lenders, and 52 foreign organizations from 12 countries had been given access to the new system. All those who took part in the new system would have their identifies kept secret, as well, according to the regulator.