Moscow, Mar 14 (IANS): Russian Finance Minister Anton Siluanov said that nearly half of the country's roughly $640 billion dollars of gold and foreign currency reserves have been frozen in the wake of Moscow's ongoing war on Ukraine.

Speaking to the local media, Siluanov said that Russia will pay rubles to its debt holders, reports Xinhua news agency.

He said that the current conflict in Ukraine has not been easy for Russian financial institutions.

Still, the country's capital reserves have made it possible for banks under severe restrictions to function.

The Russian authorities will closely monitor inflation and the state of the country's pensions, Siluanov noted.

"Of course, we have enough money to ensure the production of vital goods. The Central Bank will provide the necessary liquidity to the financial system," he said.

Since Russia started the war on February, there has been an onslaught of Western economic sanctions, including asset freezes, in response.