Oil prices will stabilize in the range of $40-60 per barrel in two years, Russia’s Former Finance Minister and head of the Center for Strategic Development Alexei Kudrin told TASS at the St. Petersburg International Economic Forum.

“My previous forecast remains. In three years – and one year has largely passed – the oil price will be very volatile. We are on the stage when oil supply is adjusting to new demand, new growth in the world, considering new technologies and renewable sources. A new correlation should emerge. It has not emerged yet. It needs two years for it. During this period the prices may grow up to $60 and fall down to $30. Such volatility is not ruled out,” Kudrin said.

The current budget was drafted considering the oil price of $50 per barrel.

Earlier, the Finance Ministry announced plans to make amendments to the current budget based on an oil price of $40 per barrel.

The approved federal budget for 2016 assumes the deficit within the 3% of GDP with spending at about 16 trillion rubles ($244 bln), revenues at 13.7 trillion rubles ($209 bln).