"In planning the budget, we approached with reasonably conservative estimates. When estimating revenues, we took the price of $40 per barrel and we think that this is absolutely correct. Here, we should not count on possibilities of increasing prices or their fluctuation in one direction or another. We should plan our budget and our responsibilities are independent of the economic situation abroad," Siluanov told the Russian parliament's upper house.
Oil prices may be impacted by changes to the US Federal Reserve interest rate as well as slowing global economic growth, including decreasing GDP growth rates in China, he added, stressing that the Russian government must make sure to fulfill budget plans regardless of external factors.
"We must be certain that in any economic conditions, we can fulfill the commitments stipulated in the budget… Overall, the government is ready for any changes in macroeconomic conditions," Siluanov said.
Global oversupply and stagnating demand caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. Prices then shortly began a recovery and are currently at around $45-50 per barrel.
