(Reuters) -Russia’s finance ministry stated on Monday it had authorized a brief process for repaying overseas foreign money debt, however warned that funds could be made in roubles if sanctions stop banks from honouring money owed within the foreign money of challenge.

Western sanctions over occasions in Ukraine have lower Russia off from key components of world monetary markets, triggering its worst financial disaster because the 1991 fall of the Soviet Union.

“Claims that Russia can’t fulfil its sovereign debt obligations are unfaithful,” Finance Minister Anton Siluanov stated in a press release. “Now we have the mandatory funds to service our obligations.”

The federal government is because of pay $117 million on two of its dollar-denominated bonds on Wednesday.

The ministry stated it had authorized a brief process to permit banks to make funds in overseas foreign money, however stated the potential of these funds going via would rely on sanctions.

A number of Russian banks have been banned from the SWIFT worldwide funds community, hampering efforts to maneuver cash outdoors of Russia.

If funds should not potential, the finance ministry stated it might make Eurobond repayments in roubles, which is tantamount to a default. The rouble has dived to report lows in latest weeks.

“The freezing of the central financial institution and authorities’s overseas foreign money accounts may be seen as a want from a number of Western nations to organise a man-made default,” Siluanov stated.