Looking for His glorious appearing! Titus 2:13

Deadly clashes in eastern Ukraine and warnings of broader US sanctions against Russia have sent tremors through Moscow’s financial markets and forced the country to cancel a sovereign debt auction yet again.

Russia’s RTS equities index fell to a one-month low, with Gazprom and Sberbank both down 3.5pc in volatile trading. Russia’s treasury pulled a 20bn rouble (£330m) bond auction intended to test the waters, saying there were no buyers at an acceptable cost. Yields on 10-year Russian bonds have jumped to 9.17pc.

Russian president Vladimir Putin admitted for the first time that US sanctions imposed after the annexation of Crimea are “causing damage” to Russia’s economy – already in or near recession – but insisted that the crisis had not yet become critical.

State-lender Sberbank said bond markets were almost completely shut for Russian banks, with companies and state bodies trying to roll over $712bn (£424bn) of foreign currency debt.

The authorities may have to raid the country’s reserve or national wealth funds to shore up the private sector, it said. Companies must refinance $54bn of foreign debt over the next six months.