Russia is scheduled to make its first interest payment on its foreign debt on Wednesday, the first since the West imposed sanctions on Moscow over Ukraine.

Moscow is due to pay $117 million on two dollar-denominated bonds.

Sanctions imposed in response to Russia's special operation in Ukraine have targeted $300 billion of the country's foreign currency reserves kept overseas. 

The Finance Ministry declared earlier this week that it had sent a payment order for "a total of $117.2 million," indicating a desire to pay.

Read more: Putin approves paying foreign creditor in rubles

Previously, Russian Finance Minister Anton Siluanov denied that Russia would be unable to make the payments.

He stated that Russia was willing to service the loan in rubles at the rate set by Russia's central bank on the day of payment. He also accused the West of coercing Russia into an "artificial default".

If Russia fails to make the bond payment, an automatic 30-day grace period kicks in, and after that, it is regarded as default on its foreign currency-held debt.

US sanctions' influence on Russian debt

US sanctions should not immediately limit Russia's ability to fulfill its debt, according to JPMorgan analysts.

Interest payments to American entities on bonds issued by Russia's Central Bank, Finance Ministry, or National Wealth Fund before March 1 are "permissible through May 25." After, they would need the authorization to continue receiving these payments, according to the US Treasury.

Western sanctions have damaged Russia's banking sector and financial system, causing the ruble to plummet.

A default automatically cuts a state from the financial markets and compromises a potential return for several years.