MINSK, Belarus (AP) — Belarus' authoritarian President Alexander Lukashenko warned Friday that he may shut the ex-Soviet nation's borders to imports and tighten controls to cope with the financial crisis.

Belarus has been hit by its worst financial turmoil since the 1991 Soviet collapse. The country recently devalued the national currency, causing panic buying of goods and huge lines at currency exchange offices.

Lukashenko said Friday that his government would shut the nation's borders if the economic situations worsens and fund only the most essential imports. "If there is a catastrophe, we will close the borders and only buy what we need most," he said at a news conference.

Belarusian authorities already have introduced strict controls over imports, trying to keep its scarce currency reserves for vital imports of components for state-run industries and leaving private entrepreneurs in the cold.

Belarus' main sponsor, Russia, has promised a bailout only on condition that Belarus privatize key industries, which long have been eyed by Russian tycoons.

The current crisis was triggered by Lukashenko's decision to raise government wages by one-third as he campaigned for re-election in December's vote. The pay hikes fueled inflation and raised demand for foreign currency, quickly draining government reserves. Last month, the government was finally forced to cut the value of the national currency, the Belarusian ruble, almost in half against the dollar.

The crisis has eroded the authority of Lukashenko, who has ruled the 10-million nation with an iron hand for nearly 17 years, earning the nickname of "Europe's last dictator" in the West.

The U.S. and the European Union have introduced additional sanctions against Belarus after Lukashenko unleashed a violent crackdown on dissenters after December's residential vote, which international observers criticized.

Earlier this month, Belarus has asked the International Monetary Fund for a loan of up to $8 billion, but Lukashenko said Friday that the U.S. and the European Union could block it.

The crisis has triggered a series of public protests, including a rally by motorists who protested against a hike in gas prices, and, most recently, a demonstration by several thousand mostly young protesters in downtown Minsk.

Lukashenko warned that police will quickly break up any future rallies and chastised his interior minister for failing to act harshly enough to disperse the latest protest.

"Another street action like that and you will lose your epaulettes," he said, addressing the minister.