A Russian newspaper had reported that a letter from Head of the Audit Chamber Sergei Stepashin to Russian Prime Minister Dmitry Medvedev said the cash reserves for the Games were 100 million rubles (£2 million/$3 million/€2.5 million) short of being sufficient to cover its tax bill.

"The preparations for the Universiade are conducted at the highest professional level with maximum transparency," said Suvalov.

"All questions and difficulties that may arise are being resolved in working order.

"Somebody wanted to find a sensation where there was none."

The Audit Chamber, the Parliamentary body in charges of financial affairs in Russia, claimed that the contents of the letter have been exaggerated by media in an official statement.

"The report from the Audit Chamber of the Russian Federation simply indicated the necessity of resolving questions in the area of taxation that may arise during the implementation of partnership agreements during the Universiade," the said.

Igor Suvalov (left) has denied reports that Kazan 2013 is on the verge of bankruptcy

They also stated that talks over the financial health of the Games are in progress between the Audit Chamber, the federal Finance Ministry and the regional Tatarstan Government that govern the host city of Kazan.

The 27th World University Games are due take place from July 6 until July 17 and will see around 13,500 athletes from approximately 170 nations compete.

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