Russia’s deputy prime minister Arkady Dvorkovich said low prices have caused reduction in investment and could soon lead to decline in output.
“It’s quite possible that if oil prices remain at the low levels for long, oil production could decline, as had been the case before,” Dvorkovich told journalists in Moscow, according to Russia’s state news agency.
Russia has been hit hard by the oil market turmoil and Western sanctions imposed on Moscow over its role in Ukraine’s crisis. It is now experiencing the worst economic downturn in years — the economy is expected to shrink by 3.4% this year. Around half of Russian government revenue comes from the oil and gas industry.