Updated 9:57 p.m. Moscow Time
MILAN, October 17 (RIA Novosti) - Russian President Vladimir Putin has stated that Russia's federal budget may be adjusted due to a fall in oil prices, though expenditures on the social sector will remain untouched.
"In reality, it is hard to forecast. In any case, I want to underline this. Russia will fulfill all its social obligations, the Russian government. Undoubtedly, we have enough reserves. Maybe we will have to do some budget adjustment, maybe even to cut some funding, but it won't concern welfare funding," Putin stated at a conference in Milan to conclude the results of the ASEM summit.
"The Russian government will fulfill all the social expenditures. It has the ability to do it without any substantial losses," Putin added.
Since early July, the price of North Sea Brent crude oil has fallen by 27 percent, whereas the price of West Texas Intermediate (WTI) crude oil, since the start of the year, by 16 percent in light of the production growth of shale oil in the United States.
According to analysts, the October decrease in the price of oil is conditioned by the suggestion that Saudi Arabia and other countries that are part of the Organization of the Petroleum Exporting Countries (OPEC) will refrain from diminishing the volume of crude oil.
On Friday, however, an increase was observed in oil prices. As of 18:00 Moscow time (14:00 GMT), the December futures price of North Sea petroleum mix of mark Brent Crude Oil has risen by 0.48 percent, reaching $86,23 per barrel, while the November futures price of light crude oil of mark West Texas Intermediate (WTI) by 0.62 percent to reach $83,21 per barrel.
