Putin says Russian economy stabilized, pledges budget deficit cuts

World leaders pose for G20 photos

HANGZHOU, China, Sept 4 (Reuters) - Russian President Vladimir Putin, in a speech at the G20 summit in China, struck an upbeat tone on the Russian economy, saying it had stabilized, and pledged to cut the country's budget deficit as well as its dependency on oil and gas exports.

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"Our economy has stabilized .... We plan to reduce the budget deficit further, and to continue to work on cutting the budget's revenues dependency on the exports of hydrocarbons," Putin said.

Russia's economy contracted by 3.7 percent in 2015 due to weaker oil prices, the country's chief commodity export, and international sanctions imposed over Moscow's role in the Ukrainian crisis.

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G20 Summit 2016 in China, leaders arrive
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G20 Summit 2016 in China, leaders arrive
U.S. President Barack Obama arrives at Hangzhou Xiaoshan international airport before the G20 Summit in Hangzhou, Zhejiang province, China September 3, 2016. REUTERS/Damir Sagolj
Turkish President Recep Tayyip Erdogan arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
British Prime Minister Theresa May arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Canadian Prime Minister Justin Trudeau (R), his wife Sophie Gregoire and their daughter Ella-Grace arrive at the Hangzhou Xiaoshan international airport before the G20 Summit in Hangzhou, Zhejiang province, China, September 3, 2016. REUTERS/Damir Sagolj
Indian Prime Minister Narendra Modi arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Japanese Prime Minister Shinzo Abe arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Saudi Arabia Deputy Crown Prince Mohammed bin Salman (C) arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
South Korean President Park Geun-Hye arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Russian President Vladimir Putin arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
German Chancellor Angela Merkel arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
French President Francois Hollande arrives at Hangzhou Xiaoshan international airport before the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Chance Chan
Italian Prime Minister Matteo Renzi steps out of the plane as he arrives at the Hangzhou Xiaoshan international airport before the G20 Summit in Hangzhou, Zhejiang province, China September 3, 2016. REUTERS/Damir Sagolj
President Nursultan Nazarbayev of Kazakhstan (R) arrives at the Hangzhou Exhibition Center to participate to G20 Summit, in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Etienne Oliveau/Pool
Singapore's Prime Minister Lee Hsien Loong arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Spanish Prime Minister Mariano Rajoy arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Mexico President Enrique Pena Nieto arrives at the Hangzhou Exhibition Center to participate to G20 Summit, in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex Dela Pena/Pool
Brazilian President Michel Temer (C) arrives arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
Indonesian President Joko Widodo arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. REUTERS/Rolex dela Pena/Pool
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According to a forecast by analysts at the central bank, Russia's economy will show low quarter-on-quarter growth in the third and fourth quarters of this year.

Putin also said the government would continue to work on improving the business climate in Russia.

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