Russia's Alternative To SWIFT: What is SPFS?

Jan, 19, 2022

By Gloria Irabor

System for Transfer of Financial Messages, SPFS, is an alternative messaging system and a Financial messaging system of the Bank of Russia which handles about a fifth of domestic payments.

The SPFS is the Russian equivalent of SWIFT and was developed by the Central Bank of Russia in 2014 after the United States government threatened to disconnect Russia from the SWIFT system.

While Russia’s SPFS can be three times cheaper than SWIFT, the network itself is only operational during weekday working hours and its messages are limited to 20kb in size. SWIFT, meanwhile, works 24/7 and allows 10Mb to be transmitted across its network.

The first transaction on the SPFS network involving a non-bank enterprise was executed in December 2017. As of March 2018, over Russian 400 institutions (mostly banks) are part of the network.

That means that the SPFS system supports intra-Russian transactions, however the problem with any SWIFT disconnection would be the absence of international connectivity.

In fact, there are plans to integrate the Russian SPFS network with the China-based Cross-Border Inter-Bank Payments System (CBIBPS), while the Russian government is also in talks to expand SPFS to developing countries such as Turkey and Iran.

A Russian disconnect from SWIFT would almost certainly mean Russia would invade Ukraine and gradually bring its economy into the Eurasian Economic Union. With the Ukrainian GDP currently at US$156 billion, it would add another 8% (assuming matters remained stable) to the Russian economy.

That compares to combined annual Russian trade with the EU and United States of about US$226 billion. This means that the risk to the EU in terms of lost Russian trade would be more significant, accounting for about 5% of all EU exports.

https://www.german-foreign-policy.com/en/news/detail/8815

>>15733664

China's alternate to Swift: Cross-border Interbank Payment System （CIPS)

CIPS Co., Ltd. (hereinafter referred to as the Company) conducts business under supervision and administration of the People’s Bank of China (PBC), in accordance with rules and regulations including Business Rules on Cross-border Interbank Payment System（CIPS）, Guidlines on Business Operation of CIPS, CIPS Participants Agreement, etc. The Company takes full charge of operation, maintenance and development of the CIPS, service rendering to CIPS participants, innovation of products, implementation of standards, expansion of markets and more. The Company facilitates services covering cross-border RMB clearing and settlement, data processing, IT support, other services entrusted by shareholders and other business and services approved by the PBC to domestic and overseas financial institutions and other entities authorized by the PBC.To accommodate the evolving cross-border RMB business, meet global need for RMB asset allocation and better serve the global use of RMB, against the backdrop of the financial opening-up of China, the PBC approved the Company’s plan of capital increase and introduction of overseas investors in March, 2018. A total of 36 domestic and overseas financial institutions jointly signed a capital increase agreement in July, 2018. On December 3rd, 2019, the first meeting of the Company’s shareholders was held in Shanghai, with delegates from all 36 shareholders attending, followed by the first meeting of its Board of Directors.

With the goal of “wherever there is RMB, there is CIPS service”, the Company is committed to becoming even more market-oriented, professionalized and internationalized and providing diversified services and products to meet the needs of different institutions at different levels.　

CIPS World Service

Up to now, CIPS has a total of 53 direct participants and 1137 indirect participants (876 in Asia, including 527 Chinese mainland indirect participants, 153 in Europe, 42 in Africa, 26 in North America, 23 in Oceania, 17 in South America).

https://www.cips.com.cn/cipsen/7050/index.html

>>15733695, >>15733664

The Bank of Russia's Financial Message Transfer System (FSS) Members

The Russian Government is also in talks to expand SPFS to developing countries such as Turkey and Iran.[6] Owing to its limitations, the SPFS system is seen as a last resort, rather than as a replacement for the SWIFT network.[1] Since 2019 many agreements were reached to link SPFS to other countries payment systems in China, India, Iran, as well as the countries inside the EAEU who are planning to use SPFS directly.

At the end of 2020, 23 foreign banks connected to the SPFS from Armenia, Belarus, Germany, Kazakhstan, Kyrgyzstan and Switzerland.

https://en.wikipedia.org/wiki/SPFS

so zelensky is doing stand-up comedy in LA

>>15733728

>>15733695

>>15733664

Reminder If Russia is banned from SWIFT Germany has a back up plan and is a member of Russia's Inter-banking system SPFS.

Germany Sends Weapons Shipment To Ukraine, Will Also Send Fuel

BERLIN (AP) — In a significant shift, the German government said Saturday it will send weapons and other supplies directly to Ukraine and supports some restrictions of the SWIFT global banking system for Russia.

Germany’s chancellery announced it will send 1,000 anti-tank weapons and 500 “Stinger” surface-to-air missiles to Ukraine “as quickly as possible.”

“The Russian invasion of Ukraine marks a turning point. It threatens our entire post-war order,” German Chancellor Olaf Scholz said in a statement. “In this situation, it is our duty to help Ukraine, to the best of our ability, to defend itself against Vladimir Putin’s invading army.”

In addition, the German economy and climate ministry said Germany is allowing the Netherlands to ship 400 German-made anti-tank weapons to Ukraine.

Germany had long stuck to a policy of not exporting deadly weapons to conflict zones, including Ukraine. As recently as Friday, government officials said they would abide by that policy.

The country has faced criticism from Ukrainian officials and other allies that it has not acted decisively enough to help Ukraine fend off the Russian invasion. Previously, Germany contributed 5,000 helmets to Ukraine’s defense.

In addition, Germany will send 14 armored vehicles and up to 10,000 tons of fuel to Ukraine.

https://www.huffpost.com/entry/germany-relents-weapons-ukraine_n_621a715ee4b03d0c8039a73c?ncid=engmodushpmg00000004

>>15733924

In Vasylkiv, after a missile strike, an oil depot is burning

@voenkorKotenok

Vоенкор Котенок Z, [2/26/2022 3:21 PM]

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В Василькове после ракетного удара пылает нефтебаза

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https://t.me/voenkorKotenok/31215