Russia has more than doubled its key interest rate after the rouble slumped by 30% against the US dollar.
Bank of Russia said it raised the rate to 20% from 9.5% to help cushion the impact on prices of the rouble's slide.
It came as the UK, along with the US and EU, cut off Russia's banks from financial markets in the West.
Any UK entity is banned from undertaking transactions with Russia's central bank, its finance ministry and its wealth fund.
"The UK government will immediately take all necessary steps to bring into effect restrictions to prohibit any UK natural or legal persons from undertaking financial transactions involving the Central Bank of Russia, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation," the government said.
The Russian currency hit a new record low after it emerged at the weekend that some of the country's banks will be banned from using the Swift international payment system.
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