RUSSIA will halt bond sales for the rest of the year and take legal action if sanctions force it into a default on its debt, according to the country’s finance minister.

Anton Siluanov’s comments in Russian newspaper Izvestia come days after the government breached the terms on two bonds by paying investors roubles instead of dollars, and its credit grade at S&P Global Ratings was cut to ‘selective default.’

The threat of default has been hanging over Russia for weeks after it was hit with sanctions because of its invasion of Ukraine. The government in Moscow says it has the funds to meet its debt obligations and has repeatedly blamed the restrictions for its difficulties in making bond payments. Siluanov has said the US and others are trying to force Russia into default.

“Of course, we will sue, because we have taken all the necessary steps to ensure that investors receive their payments,” he said, according to Izvestia. “It will not be an easy process. We will have to very actively prove our case, despite all the difficulties.” – Bloomberg