"Once we disconnect Russia from SWIFT, there is a big risk that this system will collapse, and we may then have to switch to the Chinese payment system. That would cause us serious damage," Merz said adding that in spite of this fact, Russia's possible disconnection from SWIFT "remains a topic of discussion" in Europe.
Merz pointed out that the European Union "did make a mistake" when sealing the association deal with Ukraine.
"It brought about contradictions concerning existing trade agreements with Russia," he said. "As the European Union, we should respect that those countries, which, for example, conclude association agreements or free trade zone agreements with the European Union, can simultaneously have obligations to other economic zones," the CDU leader said.
When touching upon Ukraine's possible joining NATO, Merz recalled that "there is a NATO decision of 2008, which says that Ukraine will not become a member until certain time."
"I think this position is still correct now. But it is unthinkable that we should go along with Russia's demands to exclude this freedom of decision on Ukraine's membership in the long term," he said.
Comment: This isn't just Russia's 'demand', agreements at the highest levels going back decades stated clearly that NATO would not expand eastwards.
Merz blamed Chancellor Olaf Scholz for procrastinating amid the Ukraine crisis.
The West and Kiev have recently been spreading allegations about Russia's potential 'invasion' of Ukraine. Kremlin Spokesman Dmitry Peskov castigated these claims as "empty and unfounded", serving as a ploy to escalate tensions, pointing out that Russia did not pose any threat whatsoever to anyone. However, Peskov did not rule out the possibility of provocations aimed at justifying such allegations and warned that attempts to use military force to resolve the crisis in southeastern Ukraine would have serious consequences.
This was stated by the Russian Foreign Minister Sergei Lavrov, speaking to the State Duma few days ago.
"We are drastically reducing our foreign exchange reserves, which are held in dollars," he said.
According to the minister, "this process does not go unnoticed".
“And not only in the West are they starting to wonder. But our traders also feel relieved in resolving issues related to the transfer of funds. The Central Bank has invented a system for the transmission of financial messages and it works, "Lavrov stressed.
He also said that the financial messaging system developed by the Central Bank works quite effectively and that Russia should go the way to using it.
“Those who use it, my friends - I'm particularly interested in it - say it works quite effectively. Yes, something else needs to be polished there, it's not as well established as SWIFT itself, but it works. I think this is the way to go, "he said.
At the same time, he explained that Russia is trying to reduce dependence on the dollar and, in his opinion, the United States is doing everything to make transactions with their currency risky.
Furthermore, according to the minister, the United States is making the dollar currency "risky for international agreements in general, not only with the Russian Federation, but also with other countries of the world".