First Deputy Prime Minister Igor Shuvalov, speaking at the World Economic Forum in Davos on Friday, said that an oil price of $50 per barrel would not be painful for Russian oil companies, Interfax reports .

According to Shuvalov, in Davos he spoke with Lukoil President Vagit Alekperov and with representatives of other companies.

“They will develop, sell their goods. They will remain competitive, despite the fact that the cost of production in Russia is higher than in the Gulf countries,” TASS quotes him as saying .

The price of oil at $100 per barrel “spoiled” the Russians, Shuvalov said. “People were counting on increased government spending rather than working on labor efficiency. Now we will do this because we have to,” he said.

Shuvalov admitted that the collapsed oil price harms budget revenues. “There is nothing good for us now, 2015 will be difficult. But it motivates us to improve the structure of the economy in the next decade. This is a very complex agenda, but we are focused on it. We understand that we cannot continue to live as in the previous 15 years,” the official said.

At the same time, Shuvalov expressed confidence that the ruble will strengthen further. “First, let me note that after the depreciation of the ruble, a dramatic strengthening will begin,” he said in response to the words of the moderator of the discussion about the “dramatic fall of the ruble.”

“Don’t worry, after a period of high volatility, the ruble will stabilize. Don’t be alarmed,” concluded Shuvalov.

Earlier on Friday in Davos, Shuvalov said that a “very difficult” situation had developed in the Russian economy, which could be worse than during the 2008 crisis. “When they ask the question of how we feel about what is happening now, I would say this: outwardly we observe manifestations that seem to be milder than in 2008-2009. But this is only apparent ease. In fact, in terms of depth and complexity, it seems to me that we have been in a state for a year now where we are entering a more protracted and complex crisis,” he said.

Shuvalov called the oil price of $50 comfortable for Russian companies