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The Russian finance ministry building, in Moscow, on March 30, 2021.MAXIM SHEMETOV/Reuters

Russia has enough funds to service its debt in time and to redeem all its debt obligations, the finance ministry said on Tuesday.

Facing waves of sanctions over what it calls “a special military operation” in Ukraine, Russia could face its first sovereign external default in over a century after it made arrangements to make an international bond repayment in rubles, even though the payment was due in dollars.

“Russia has not declared default on its Eurobond obligations,” the finance ministry said.

“All possible claims of creditors in connection with the current situation should be forwarded to the authorities of states that have illegally created obstacles for Russia to fulfill its debt obligations.”

Earlier in April, S&P lowered Russia’s foreign currency ratings to “selective default” on increased risks that Moscow will not be able and willing to honour its commitments to foreign debt-holders.

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