But Siluanov denied that Russia “cannot fulfil the obligations” of its government debt. The government is due to pay US$117 million on two of its dollar-denominated bonds on Wednesday.

Technically it has a 30-day grace period, but that is a minor point. If it happens it would represent its first international default since the Bolshevik revolution over a century ago.

‘Financial nuclear war’: Russia now world’s most-sanctioned nation

Siluanov said Russia “is ready to make payments in roubles” according to the exchange rate of Russia’s central bank on the day of the payment, including its Eurobond issued since 2018.

Sanctions on Moscow over its “military operation” in Ukraine delivered an unprecedented blow to Russia’s banking and financial system, with a large part of its foreign currency reserves frozen.

Russia has boosted efforts to prevent money from leaving its borders and to support the rouble, which has already seen a precipitous drop in value against the dollar.

Russian President Vladimir Putin said that Western sanctions were illegimate and Russia would calmly solve the problems arising from them.

Addressing a government meeting last Thursday, Putin also said Moscow – a major energy producer which supplies a third of Europe’s gas – would continue to meet its contractual obligations.

Speaking calmly, the Kremlin leader acknowledged that sanctions were being felt.

“It is clear that at such moments people’s demand for certain groups of goods always increases, but we have no doubt that we will solve all these problems while working in a calm fashion,” he said.

Ukraine crisis: why Western sanctions are a double-edged sword

“Gradually, people will orient themselves, they will understand that there are simply no events that we cannot close off and solve.”

Meanwhile, the Russian embassy in the United States dismissed as “fake” a Wall Street Journal report Sunday that said Russian authorities threatened foreign companies hoping to withdraw from the country with arrests and asset seizures.

The report said Russian prosecutors have issued warnings to several foreign entities – via calls, letters and in-person visits – including to Coca-Cola, McDonald’s, Procter & Gamble, IBM and Yum Brands, the parent company of KFC and Pizza Hut.

They have threatened to arrest officials who have criticised the government or to seize assets, including intellectual property.

“The warnings have prompted at least one of the targeted companies to limit communications between its Russian business and the rest of the company, out of concern that emails or text messages among colleagues may be intercepted, some of the people (familiar with the matter) said,” according to the Journal.

Additional reporting by Reuters