Russia has designated South Korea as an "unfriendly" nation after Seoul joined international sanctions against Moscow over the Russian invasion of Ukraine.

The Russian government released a decree on Monday, approving a list of foreign states and entities deemed "unfriendly" towards the Kremlin and Russian companies and citizens.

The list includes the United States, Britain, Australia, Japan, European Union member states, Canada, New Zealand, Norway, Singapore, Taiwan and Ukraine, among others. The countries on the blacklist will likely face sanctions including diplomatic restrictions.

The Russian government said that the decree was created within the framework of an executive order issued by Russian President Vladimir Putin on Saturday.

According to the executive order, Russian citizens and companies, the state itself, its regions and municipalities that have foreign currency-based obligations to foreign creditors from nations on the list will be able to pay them back in rubles.

The move is likely to strike a blow to South Korean companies dealing with Russia as the value of the Russian currency has fallen significantly.