[HN Gopher] Germany softens stance on curbing Russian access to ...
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       Germany softens stance on curbing Russian access to SWIFT
        
       Author : dmarchuk
       Score  : 49 points
       Date   : 2022-02-26 19:16 UTC (3 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | mngnt wrote:
       | > joining other Western powers in support of harsher sanctions
       | 
       | They "soften" in their "don't cut Rusia from SWIFT" stance.
       | 
       | In other words, Germany is coming closer to harder sanctions.
        
         | sschueller wrote:
         | Isn't this worse for the US than for Germany? Isn't it in the
         | interest of the USD to keep swift as the primary method for
         | moving money and not let any other system rise?
        
           | ineedasername wrote:
           | It only hurts the US if this action leads to the rise of an
           | alternative.
           | 
           | But SWIFT is pretty deeply entrenched in the industry and
           | having other standards compete is a recipe for chaos.
           | Russia's system that they been building since similar threats
           | in 2014 may soften the blow for them, and allow them to
           | continue to function albeit with a lot more difficulty.
           | 
           | BUT: this entire situation with the Ukraine is made
           | possible-- in part-- because Europe has ceded much influence
           | and control over their energy sector to Russian supplies.
           | Europe is restricted in what they can sanction lest Russia
           | retaliate against their energy supply.
           | 
           | Because of this, I very much doubt that many European
           | countries would further tie themselves to Russia with a new
           | Russian-backrd protocol. If anything I think this situation
           | will Europe step back a bit from that relationship. They'd be
           | wise to build out more extensive energy supply infrastructure
           | from Canada and/or the US so that they are diversified
           | against risk of geopolitical conflict. And if course at the
           | same time significantly ramp up home-grown renewable
           | resources to that dependence on any other major foreign
           | powers is kept to a minimum.
        
           | kettleballroll wrote:
           | As far as I understood, the first order effect is that
           | excluding Russia from swift disables the usual way for
           | Germany to pay for Russian gas and oil, which means that
           | unless they physically move a truckload of euros to Moscow
           | (and get Moscow to agree to that) they are cutting themselves
           | off from one of their major energy supplier. Plus Russia is a
           | big trade partner, but any outstanding bills will then likely
           | go unpaid, and most likely a lot of contracts will be voided.
        
           | [deleted]
        
           | detaro wrote:
           | I don't think SWIFT is bound to USD, since it's mostly
           | messaging?
        
       | firstSpeaker wrote:
       | Cutting Russia from SWIFT is not like cutting Iran off. Russia is
       | way richer with far more reach and cutting more and more
       | countries off of the network will give more and chance for one of
       | the alternatives to grow.
        
         | sydthrowaway wrote:
         | This.
         | 
         | This is another huge mistake from the Western liberal order
         | that keeps fumbling the ball.
         | 
         | Relying on Russian gas for energy security was the first.
         | 
         | What are the root causes if these disastrous decisions? How did
         | the East get smarter, more Machiavellian than us? They were in
         | the trash can 20 years ago. Perhaps getting fat and rich rather
         | than fighting for every penny.. we are missing street smarts,
         | and end up with Justin Trudeau
        
           | Gatsky wrote:
           | What would you do now instead?
        
           | [deleted]
        
           | happytoexplain wrote:
           | Many people (most?) consider "Machiavellian" to be an insult
           | - essentially synonymous to "smart but immoral". Part of the
           | West's ideology, for better or worse, is the idealistic
           | belief that smartness and simple prudence/shrewdness can be
           | separated from the negative aspects of Machiavellianism.
        
             | robbedpeter wrote:
             | There's also recognition of the valid circumstance in which
             | you're presented with choosing a lesser evil. If all
             | choices are bad, choose the least bad, and those contexts
             | change radically over different time frames.
        
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       (page generated 2022-02-26 23:02 UTC)