Understanding SWIFT, the System Allegedly Hindering Russian Oil Exports to Indonesia

JAKARTA, KOMPAS.com - The Extraordinary and Plenipotentiary Ambassador of the Russian Federation to the Republic of Indonesia, Sergei Gennadievich Tolchenov, stated that there are at least three main issues that must be resolved if Indonesia is serious about importing oil and gas from Russia. One of them is the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment messaging system. Sergei explained that to purchase oil, Indonesia must transfer money to Russia. However, the problem is that Russia is no longer part of SWIFT due to sanctions from the United States and Western countries over the conflict in Ukraine. “That’s the issue because we, Russia, cannot use SWIFT; perhaps (it can be done) only through a third country,” Sergei said when met at the Radio Sonora office in Jakarta on Thursday (17/4/2026). So, what is this SWIFT system that Russia cannot use and is seen as a barrier to oil transactions with Indonesia? This system delivers 42 million financial transaction messages per day and is used for inter-country trade systems. The Financial Times notes that cross-border banking transactions without SWIFT would be far more expensive and time-consuming. Former Russian Finance Minister Alexei Kudrin estimated that Russia’s gross domestic product would shrink by 5% in a year without SWIFT. Such a step is also seen as endangering Russia’s ability to profit from oil and gas exports, which account for 40% of the country’s revenue. Nevertheless, Russia has established an alternative payment system with China that it can use.