NEW YORK CITY, New York: Ratings agency Fitch has warned that a Russian default on its national debt is “imminent,” and downgraded the country’s healthy-investment rating to “C.”

A recent decree by Russia’s President Vladimir Putin allowing certain foreign debts to be paid off in the plummeting ruble, which is currently worth less than eight-tenths of an American cent, was cited by the agency.

Amidst Russia’s ongoing war against Ukraine, which led to the imposition of severe global economic sanctions against it, the agency said, “More generally, the further ratcheting up of sanctions, and proposals that could limit trade in energy, increase the probability of a policy response by Russia that includes at least selective non-payment of its sovereign debt obligations.”

According to Bloomberg, Putin’s decree allows Russian public and private entities to pay back debt in rubles, if the debt is owed to a creditor from “countries that engage in hostile activities, including Japan, the U.S., and EU member states.”

The Russian government has $117 million in bond debts due on 16th March, and analysts are concerned that a payment in rubles could trigger a credit default swap. An additional $65 million is due next week.