(Reuters) – Russian lender Sberbank on Tuesday stated it had made a coupon cost on dollar-denominated subordinated Eurobonds in roubles on the central financial institution trade fee.

The flexibility of Russia to service its debt is in focus because the nation faces the prospect of sovereign default after Western capitals imposed sweeping sanctions within the wake of what Moscow calls a “particular operation” in Ukraine, which began on Feb. 24.

Sberbank, which serves about 100 million clients in Russia, is likely one of the nation’s most important monetary establishments.

“As a consequence of blocking sanctions imposed on Sberbank by the USA and United Kingdom, the worldwide monetary infrastructure is stopping (Sberbank) from making funds to buyers as set out within the issuance documentation,” the financial institution stated in a press release.

Sberbank stated it has two subordinated Eurobond points excellent: a $2 billion concern due in October 2022 and a $1 billion concern due in Could 2023, with coupon funds due twice a yr.

“The financial institution confirms that it has enough liquidity to fulfill all of its obligations and is doing its greatest to service its debt,” it stated.