Russian Economic Development Ministry on Saturday revised the country's economic forecast for 2015 and predicted that Russia's gross domestic product (GDP) will shrink by 3 percent in the year, given the oil price of 50 U.S. dollars per barrel.

Previously, based on a presumed oil price of 80 U.S. dollar a barrel, the ministry estimated the country's GDP would fall by 0.8 percent for the year.

"While consensus forecasts indicate higher estimates, we take the most conservative figures into account," said Economic Development Minister Alexei Ulyukayev.

The ministry also expected an annual inflation rate of 12 percent in the year, compared with last December's projection of 7. 5 percent.

The fresh estimates are part of the revised economic forecast for 2015 submitted to the government for approval.

Russia's Ministry of Finance will have to make a few adjustments for this year's federal budget due to the worsening economic forecast.

Ulyukayev also defended the cut by Russia's Central Bank Friday of the key interest rate from 17 to 15 percent, saying the move was "absolutely justified and necessary as it signified the financial stability risks have lowered."

The ailing Russian economy has suffered a lot due to the mounting pressure from Western sanctions and global plummet of oil prices. According to the Federal State Statistics Service, Russian GDP growth dropped to 0.6 percent last year from 1.3 percent of the previous year. Endite

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