KIEV, Aug. 3 – Prime Minister Mykola Azarov, who two weeks ago warned about the possibility of a new wave of global financial turmoil, on Wednesday rejected speculation the hryvnia may come under attack and lose value.

The comment comes amid concern the hryvnia may face increased downward pressure against the U.S. dollar before the end of the year unless Russia agrees to lower natural gas prices.

“I want to assure our people: there will be no financial turmoil in Ukraine,” Azarov said at a government meeting. “Despite intentions of some politicians to purposely stir up anxiety among the people, the government and the National Bank are strictly controlling the situation.”

Two weeks ago, Azarov said Ukraine should stop relying on external borrowing because of the threat of a new wave of financial turmoil amid debt crises in the United States and in the European Union. He characterized the situation as “uneasy and alarming,” and said Ukraine must take steps to prepare for the turmoil.

The U.S. has successfully averted default on its debt on Tuesday after President Barack Obama had signed the legislation increasing the debt ceiling, following weeks of intensive talks between Republican and Democratic parties.

Some analysts, however, warned Ukraine may face a financial crisis that may be triggered by rapid increase in price of natural gas.

The threat of such scenario accelerated after Ukraine and Russia had failed to agree on natural gas price reduction last month.

Russian President Dmitry Medvedev cancelled his trip to Ukraine – and the meeting with President Viktor Yanukovych - on July 31 amid the lack of the agreement on the gas issue.

Dmytro Marunich, the head of the Energy Research Institute, a Kiev-based think tank, said Ukraine has several months to try to solve the problem or face the crisis.

“Yanukovych has less and less time to strike a deal on lowering prices for Russian gas,” Marunich said.

“Unless the agreement is reached within the next several months, the high gas price may play a role of a trigger that will set off a new wave of economic crisis in Ukraine,” Marunich said.

“The threat of the hryvnia’s devaluation will rise considerably,” Marunich said.

But Azarov on Wednesday sought to downplay the warning.

“Let me stress again,” Azarov said. “The people and businesses can count on financial stability, the stability of the national currency. We have resources and economic potential that will provide for the stability of the hryvnia.” (tl/ez)