Indian banks will wait for orders from the government on whether to stop dealing with Russian banks after the US, the European Union and its allies moved to isolate some of them from the global financial markets platform, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), said people with knowledge of the matter.

The government hasn’t given any official instructions on blocking the banks, said a person familiar with the matter. It will be business as usual till the government orders otherwise.

The official added that the sanctions imposed by the US and its allies will not impact trade flows between India and Russia.

SWIFT is the world’s main international payments network, with trillions of dollars transferred using the system each year.

Fed to Announce Names of Banks

It’s a secure messaging system that facilitates rapid cross-border payments, allowing international trade to flow smoothly.

Officials aware of the matter said that it’s highly unlikely that India would move to ban cross-border trade with Russia, especially after it abstained from voting at the UN Security Council against the country over Ukraine.

The measures announced by the US, Britain, Europe and Canada also include restrictions on the Russian central bank’s international reserves. The sanctions will be implemented in the coming days.

“Which Russian banks the US sanctions will hit is still unclear,” said a senior executive at a large public sector bank. “Sberbank is the biggest bank in Russia and one needs to see if that is on the list. The US has been cautious in announcing the names of the banks because almost half of Europe’s oil and gas comes from Russia and is processed through SWIFT and it is not easy to change or stop these transactions overnight.”

The official said more clarity will emerge after the US Fed announces the names of the banks.

VTB Bank, Russia’s second-biggest lender, has been under some sanctions since 2014 after Russia’s Crimean incursion but if Sberbank is also placed under restrictions, it could have broader impact, said experts.

If Russian banks are cut off from SWIFT, settlements will be hit, officials said.

“Even if there may be few Indian bank branches in Russia, many banks here have correspondent banking relation with Russian banks for a lot of business transactions and this channel could be worse hit,” said a payment system operator on condition of anonymity.