Kremlin Says There Are No Grounds for Real Default in Russia

MOSCOW (Sputnik) - There are no grounds for a real default in Russia, Kremlin spokesman Dmitry Peskov said on Wednesday, adding that it can only be artificially created.

"Again, for details, it is better to contact the Central Bank, but once again, Russia has all the necessary resources to service its debts", Peskov told reporters.

The spokesman added that if the West continues blocking Russian eurobond payments in foreign currency, then Moscow will pay in rubles.

"If this is not possible, then theoretically, theoretically, of course, some kind of default situation can be organised, but this is a purely artificial situation, there are no grounds for a real default", Peskov said.

Moscow has faced a wave of sanctions and economic pressure from the West since Russia launched a special military operation in February.

After an initial drop, the Russian currency has been on a rebound. At the same time, Moscow announced that "unfriendly countries" will now have to pay for fuel in rubles, warning that a refusal to do so will be considered a breach of contract.