"NASA has not received any indication from Roskiakosmos (the Russian space agency) that Russia will not be able to meet its commitment under the International Space Station agreements," NASA said in a brief statement.

The Russian space agency had warned earlier in the day, however, it can no longer afford to meet its commitments to help build and supply the International Space Station.

"The situation (in the Russian space industry) is difficult" and "there are risks" that the ISS operations may be suspended, Russian Space Agency spokesman Sergei Gorbunov told AFP in Moscow.

His remarks came a day after the press quoted space official Valery Ryumin as saying the situation had become "desperate" and he had written to NASA to discuss "temporarily suspending" the station.

Russian space construction company, Energia, forced to borrow money, has been having trouble repaying its debts which amount to one billion roubles (about 32 million dollars) because of insufficient state subsidies.

NASA acknowledged in the statement that it has heard of Energia's troubles.

"NASA has received some preliminary indications that the primary Russian contractor for the ISS is having financial difficulties and is discussing the potential impact to ISS resulting from these difficulties with the responsible officials" at its Russian counterpart, the statement said.

Nevertheless "NASA and the United States government fully expect that the Russian Aviation and Space Agency and the Russian government will meet their commitments under the International Space Station agreements," NASA said.

According to the Russian press, Russia's space program will only get 1.2 billion roubles (38 million dollars) of subsidy in 2003 which will not cover repayment of debts or the fulfillment of its ISS obligations.

"We've had these problems for a long time. The government is trying to deal with them, but that will take time," said Gorbunov.

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