MOSCOW - The Russian economy would be able to function normally for at least one year in case the oil prices drop to $60 per barrel, Russian Finance Minister Alexei Kudrin said on Monday.

"We expect this would decrease our growth to zero or below zero, but in principal, we could be able to cope with such low prices during a year," Kudrin told the Russia Today TV channel.

The minister said the government would have to tailor its budget policy with spending cuts and increasing lending to fulfill all its obligations.

"We are ready to provide stability for a year or two and fulfill all our duties," Kudrin said.

He said on Sunday that he expected the world oil prices to fall to 60 dollars per barrel in the next one to two years.

Kudrin's deputy Tatyana Nesterenko said earlier that the government could reconsider the federal budget if the oil prices drop below 60 dollars.

Russian budget for the next three years has been drafted on assumption that the oil prices hover over 100 dollars which leaves the government with no "safety airbag."

On Sunday, Kudrin said he would leave his post if President Dmirty Medvedev would become the new prime minister after presidential elections in 2012 because of "principal disagreement" between the two men over financial issues.