"We believe that in the second half of 2017 oil excesses will go away from the market, and oil process will stabilize. We count on their stabilization at the current level," Putin said.
According to Putin, the oil production cut agreement of major oil producers will lead to an increase in oil prices, while the rise of barrel by $10 will allow the Russian budget to receive additional income of 1.75 trillion rubles ($28.6 billion at the current exchange rate) per year.
"It will be a gradual reduction, which will have almost no impact on the total production volume, for us it is absolutely acceptable. But we expect that this will lead to an increase in oil prices, which has already happened," Putin said.
"I want to tell you about the effect on the country's budget and for our companies if this state of affairs upholds. The difference in oil prices of $10 will mean additional budget revenue of 1.750 trillion rubles. And for the oil companies, despite the decline in production, the price difference of $10 will give an additional income of 750 billion rubles. Thus, in the end, we all win," Putin said.
According to Putin, Russia is expecting oil prices to stabilize in the second half of 2017 at the current level of about $55 per barrel.