"We see that no one reduces the production of oil, and, most likely, we will soon observe further decline in oil prices," Siluanov said.
On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) stated that its Reference Basket of petroleum blends fell in value by 4.88 percent, reaching the same level as on October 1, 2003, or $27.07 per barrel, majorly due to prolonged global oversupply and the OPEC unwillingness to cut production out of fear of losing market share.
The Russian budget has not adapted itself to the slumping oil prices, so the country’s government will have to make decisions to change the budget policy, Siluanov said.
"I want to say that in current conditions enterprises and the private sector have largely adapted to the new conditions, but the budget, the state companies, the state sector are yet to adapt to those conditions," Siluanov said at the Gaidar Forum.
"We are yet to take a whole number of decisions to change the budget policies," the minister added.