Due to extensive sanctions imposed by the West, Russia may be forced to pay its debt in worthless rubles. A U.S. dollar is currently worth about 123 rubles.

At the start of Russia's invasion of Ukraine, the ruble fell to a record low. Stock trading on the Moscow Exchange remains closed.

President Joe Biden recently noted that credit rating agencies have downgraded Russia’s government to "junk status."

“You know what the value of a ruble versus a dollar? You need 200 rubles to equal $1 today. 200,” President Biden said Friday. “The totality of our economic sanctions and controls are crushing, crushing the Russian economy."

The West has targeted multiple Russian banks in the sanctions, which has left Russia without many options. Some experts have suggested that Russia could pay in cryptocurrency and continue to operate that way. Multiple countries are also taking steps to ensure that Russia uses crypto.

According to Reuters report, Russia is expected to pay $117 million for two of its dollar-denominated bonds on Wednesday. Whether Russian bank’s payments stand strong is dependent on the current sanctions and any that have yet to be implemented.

Russian Finance Minister Anton Siluanov wrote in a statement, according to The Hill, that Russia has “the necessary funds to service our obligations.”

“Is that a default ? . . . From Russia’s point of view we are fulfilling our obligations,” Siluanov said on a Russian state TV program that aired Monday.

He also denied claims that Russia cannot fulfill its sovereign debt obligations.

Meanwhile, Ukraine claims that despite the war, it will service debt on time and in full. The West, the International Monetary Fund, and G7 countries have all pledged support for Ukraine, which is helping them survive some of the more drastic economic effects of war.

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