Russia can be prepared for $40 oil, finance minister Siluanov says

Anton Siluanov, Russia's finance minister, speaks during the Global CEO Summit on the opening day of the St. Petersburg International Economic Forum in Saint Petersburg, Russia, May 22, 2014.

Chris Ratcliffe | Bloomberg | Getty Images

Anton Siluanov, Russia’s finance minister, speaks during the Global CEO Summit on the opening day of the St. Petersburg International Economic Forum in Saint Petersburg, Russia, May 22, 2014.

Russia has accounted for oil at $40 a barrel in its budget, the country’s finance minister Anton Siluanov told CNBC in a TV interview on Friday.

Brent crude was trading above $57 on Friday, yet the Russian minister said of which the budget has taken into account cost fluctuations.

“In order to minimize cost fluctuations on foreign markets we have prepared a budget which can be based on a cost of forty dollars a barrel. I think of which This particular can be a fairly considered as well as also conservative cost, which has been factored in for the next three years,” Siluanov told CNBC in a TV interview on Friday.

“Incidentally our balance of payments on our current account can be balanced on a cost of forty dollars a barrel. Therefore, the percentage of the federal budget coming from oil as well as also gas revenues has gone down coming from 60 percent to 40 percent.”

Oil prices have fluctuated This particular year, falling below $45 a barrel as well as also going above $59.

yet some analysts have predicted prices could go lower. Global stock builds, rising non-OPEC production as well as also sluggish growth in demand could weigh on the oil cost, the International Energy Agency (IEA) said in its report published Thursday.

Meanwhile, OPEC’s production hit the second highest monthly level This particular year in September.

“Our challenge can be to safeguard our budget, to safeguard the implementation of our obligations with regards outside factors including a reduction within the cost of oil,” Siluanov said.

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