Moscow- Russian President Vladimir Putin took a decision to cut Russia’s oil production, Kremlin spokesman Dmitry Peskov said Wednesday.

“The president had personal contacts and the decision was made personally by the president on the basis of the consensus reached with the heads of those oil companies,” Peskov said.

Peskov said that the issue of compensation to companies for the decline in production was not discussed, noting that “raising the price of oil for every $5 brings additional revenues to the state budget and for the companies themselves.”

Previously, Vice President and co-owner of oil company LUKOIL Leonid Fedun said that the company expects “will be offered some compensation” as “the freezing of oil production requires a certain cost.”

In an interview with a Russian TV, Fedun said that Lukoil was expecting the government to issue a decree on production cuts with tasks for each company and probably offer some compensatory mechanisms for lower output.

It seems that Russia is still working internally on organizing the oil production process and maybe distributing reduction shares among the country’s major oil companies.

The chiefs of Lukoil, Gazprom Neft, Tatneft, Novatek and Surgutneftegaz met Russian Minister of Energy Alexander Novak.

Before the meeting the General Director of “Tatneft” Nail Maganov told reporters that the meeting will tackle some energy proposals, adding that “expectations are positive”.

The conversation of the Minister with the chiefs lasted less than an hour; the participants were very reluctant to share the results.

In a common matter, the chances of a significant hike of taxes for Russian oil and gas companies have lessened based on preliminary parameters of the Russian federal budget for 2017 and OPEC’s agreement to reduce oil production, Fitch Ratings said Wednesday.

Taxes remain a key factor in the profitability of Russian oil and gas producers and major changes would be a significant threat to their credit quality, the agency said.