Russia's former finance minister warns oil could drop to 16 dollars a barrel

Former Russian Finance Minister Alexei Kudrin does not rule out a fall in oil prices to $16–18 per barrel.

“Today, there are a number of factors, which are working to reduce the price. The price will be lower than what we are seeing today. It may reach $18 or even $16 [per barrel], but only for a short time. Indeed, this will be the lowest point [prices will go],” Kudrin said at the VTB Capital business breakfast in Davos.

Kudrin believes the Russian economy can return to growth within one to two years. “In one or two years, the economy will return to positive indicators,” he said.

The former finance minister added that the availability of budgetary reserves, low debt, and a flexible exchange rate has allowed the Russian economy to adapt quickly to the current conditions.

• Kudrin served as finance minister from 2000–2011, which makes him the longest-serving finance minister in post-Soviet Russia. He was widely credited for prudent fiscal management and commitment to important tax and budget reforms.
• It is believed Kudrin left his post as finance minister, when he was not offered the job of prime minister in Putin's third presidential term. Instead, then Prime Minister Vladimir Putin and then President Dmitry Medvedev decided to swap offices.
• Although Putin used Kudrin as somewhat of a scapegoat during his annual Q&A session in 2015, Kudrin is believed to be returning to favor within the Kremlin, as the economic crisis grows. He has recently took part in an anti-crisis meeting chaired by Vladimir Putin.