John Sullivan, a former director who is now an international ambassador for the club, claimed he was in talks with various interested parties, but the board have denied involvement in any discussions.
Co-chairman Mike Garlick said: "Neither myself, co-chairman John Banaszkiewicz, or fellow directors Barry Kilby and Clive Holt have had any scheduled negotiations with Russian investors regarding potential investment.
"Mr John Sullivan is currently an Associate Director of Burnley Football Club until May 2013, when this role will cease.
"The football club has not retained John in any capacity to act for the club with regards to securing any new investment.
"The club cannot comment on the involvement of Mr Brendan Flood in any negotiations as he is not permitted to be a director of Burnley Football Club due to Football League regulations.
"Burnley is always open for new investment, provided that it meets the vision of the Board of Directors, is of a 'fit and proper' nature, has the club's best interests at heart and can genuinely assist us in achieving our ultimate aim of gaining promotion."