Russia warns it may pay foreign debt in roubles
STORY: As the conflict in Ukraine nears three weeks old, the financial pressure on Russia continues to mount.
Western sanctions have all-but cut the country off from global markets.
On Monday (March 14) Moscow said it might start to pay foreign debt in roubles as a result.
Russia is due to pay $117 million on two dollar-denominated bonds on Wednesday (March 16).
Officials say rumours that it can’t service its debts are untrue.
But the finance ministry said it could make payments in roubles if sanctions prevent it from accessing foreign currency.
Analysts say that would be tantamount to a default.
Several Russia banks have been banned from the SWIFT system of international payments.
That hampers efforts to move money outside of Russia.
The finance ministry said the financial restrictions on the country amounted to an attempt by western countries to force a kind of default.
