In a statement the National Settlement Depository said, Russian lender VTB has made coupon payments in roubles to holders of its domestic subordinated bonds denominated in dollars and euros.

Russia’s ability to continue to service its debt in foreign currencies despite massive Western sanctions is facing growing scrutiny.

VTB, Russia’s state owned second largest bank, made coupon payments in roubles on its two bonds denominated in foreign currencies issued on its home market in 2021, showed regulatory fillings.

VTB made a payment of $3.1 million (255.7 million roubles) in coupon payouts on its two euro-denominated bonds and 312.3 million roubles on the dollar-denominated bond issued last year, as per regulatory documents.

State-owned Russian Railways has said, it has attempted to make interest payments on bonds denominated in Swiss francs but was denied the capability.

On Tuesday Russian steelmaker Evraz  said, it had made a regular coupon payment on $700 million of bonds maturing in 2024, with payment transferred to investors on time and via their respective clearing systems.

The risk of default carries potentially long lasting consequences for Russia. Weighed down by sanctions, Moscow has limited access to its gold and foreign exchange reserves of around $300 billion.

In case of a default, Russia will be unable to access the international borrowing markets until creditors are fully repaid and any default-related legal cases are settled.

($1 = 82.4540 roubles)

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