Russia's economy is still largely dependent on oil, a commodity which has seen a 50 percent-plus decline in value since June 2014, falling from a high of $114 a barrel then to around $50 a barrel now.
The combination of low oil prices and sanctions has weighed heavily on investor confidence, prompting large capital outflows from Russia (estimated at $65 billion this year, Siluanov said, an improvement on estimates made at the start of the year that were double that), weakening the ruble weaken greatly against the dollar and thus spurring on a rise in consumer prices.
The decline in Russia's fortunes on the back of a glut in global oil supply and lack of demand has prompted many within the Kremlin to urge for a faster diversification of the economy away from commodities, with minister Siluanov among those calling for change.
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"Our current goal is to make the economy and budget less dependent on oil," Siluanov told CNBC. "Our budgetary projections for the next year are based on the assumption of $50 per barrel – the level we have today -- and we have recently experienced a significant reduction in oil and gas revenue within the budget. It used to be about 52 percent of the budgetary revenues but now it's gone down to 43 percent," he said.
"While this is mainly down to the ruble depreciating, as well as the sanctions imposed against Russian companies, and under these circumstances we will have to develop other industries in order to promote import substitution to replace the goods that have become more expensive."