Concept: October 8, 2022. What is the SPFS?

The System for Transfer of Financial Messages (SPFS) is Russia's equivalent to SWIFT. This system was developed by Russia when it was threatened by the western countries to be cut off from SWIFT as a form of sanction. It turns out that the western countries indeed sanctioned Russian banks cutting them from SWIFT, so SPFS started to be used.

Starting in 2019 many agreements have also been signed, linking SPFS to other countries payment systems in China, India, Iran, and with countries of th Eurasian Economic Union (EAEU) which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan. The EAEU also has Free Trade Agreements with Serbia, Singapore and Vietnam, which could use the system. At the end of 2020, there were 23 foreign banks connected to the SPFS from Armenia, Belarus, Germany, Kazakhstan, Kyrgyzstan, and Switzerland.

For further information, read this article

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.