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The Russian central bank raised its key interest rate to 20% from 9.5% on Monday in an emergency move, and authorities told export-focused companies to be ready to sell foreign currency as the rouble tumbled to record lows, Reuters reported.

The rouble hit a low of 120 to the dollar on electronic currency trading platform EBS after President Vladimir Putin ordered his military command to put nuclear-armed forces on high alert on Sunday, while the West imposed harsh sanctions against Russia.

The central bank, which says it targets inflation at 4% and will do all necessary to ensure financial stability, said the rate increase will bring deposit rates to levels "needed to compensate for the increased depreciation and inflation risks".

"This is needed to support financial and price stability and protect citizens' savings from depreciation," it said.

In another attempt to support the rouble, the central bank and the finance ministry said they will jointly decide on ordering Russian exporting companies to sell 80% of their foreign currency revenues on the market.

Russian authorities have also ordered brokers to suspend short selling on the Russian market and stop executing orders by foreign legal entities and individuals to sell Russian securities.