Oct. 31 (Bloomberg) -- Russia, the world's biggest energy exporter, isn't worried if slowing global demand pushes oil prices as low as $40 a barrel, Finance Minister Alexei Kudrin said.

``We aren't afraid of oil at $50 a barrel or at $40 a barrel,'' Kudrin told lawmakers today in comments broadcast by state channel Vesti-24. Social payments to teachers, doctors and pensioners would be made on time, he said. ``This is not 1998.''

High energy prices have helped the economy expand almost 7 percent a year on average over the last decade. The country was pushed to the edge of bankruptcy in 1998 when the oil price dropped to $10 a barrel and the government defaulted on $40 billion of debt and devalued the ruble.

The price of Urals crude fell to $59.90 per barrel today after peaking at $142.50 in July, Bloomberg data show.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net.

Last Updated: October 31, 2008 07:36 EDT