Russian exports of all commodities from oil and metals to grains will be severely disrupted by fresh Western sanctions, dealing a blow to Russia's economy and hurting the West with a spike in prices and inflation, traders and analysts said.
The United States and its allies on Saturday moved to block certain Russian banks' access to the SWIFT international payment system in further punishment to Moscow as it continues its military assault against Ukraine.
"While trying to exempt energy transactions, SWIFT can still cause significant disruption to energy trade flows in the near term, at least until buyers switch to alternatives like Telex or other systems," said Amrita Sen, co-founder of the Energy Aspects think-tank.
The bid to exclude from the trading system whole chunks of the world's 11th largest economy - and supplier of one-sixth of all commodities - has no precedent in the globalised age.read moreAt least 10 oil and commodities traders, who spoke to Reuters on condition of anonymity, said flows of Russian commodities to the West will be severely disrupted or totally halted for days if not weeks until some clarity is established on exemptions.
Some traders said while Russian banks that were still off the sanctions list, such as Surgutneftegasbank, could probably clear dollars, that did not necessarily solve the problem.
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