Kremlin says there is no price war with Saudis

Moscow — Russia and Saudi Arabia are not conducting a price war in the oil market, Kremlin spokesman Dmitry Peskov said Friday, according to the Prime news agency.

"There are no price wars between Russia and Saudi Arabia. There is a very unfavorable price environment for many countries... We have good relations with Saudi Arabia, we are partners, and we don't think that anyone should intervene in this relationship," Peskov said.

He added that current oil prices are not catastrophic for Russia, which can cope with low oil prices in the short to medium term.

"As you know, the Russian budget is calculated at $42/b. Of course the [current] price is not favorable for us, but there is a cushion, and that will kick in when needed," Peskov said.

Peskov's comments come a day after Lukoil vice president Leonid Fedun described oil prices below $25/b as catastrophic, in an interview with Russian daily RBC.

He said that Russia and Saudi Arabia have begun a "war of attrition" and that even those Russian producers that supported leaving the deal did not imagine crude prices would fall below $25/b.

Fedun said that if OPEC+ participants had agreed to an extension of the deal, a barrel of oil would now cost around $50/b.