The Organization of Petroleum Exporting Countries is set to hold an extraordinary meeting in Algeria on Wednesday to decide on further reductions in oil production amid weak world oil prices. The cartel is expected to decide to reduce production by some 2 million barrels a day.

"OPEC expects Russia to cut output by 200,000-300,000 barrels," Vagit Alekperov said.

In 2008, Russia has so far produced an average of 9.5 million barrels a day.

Alekperov said LUKoil would be ready to support a decision on oil output cuts, if Russia made a corresponding decision along with OPEC. In that case, he said, the company would have to decide which deposits and oil wells could be "stopped painlessly."

World oil prices have fallen by more than 60% from a record high of $147 per barrel in July to under $50, as the global credit crunch has reduced the demand for fuel.

Russian President Dmitry Medvedev said on Thursday that Russia could join OPEC in cutting output, and suggested the country could join the oil cartel given the importance of oil prices to the economy and government finances.

Russia and OPEC together account for more than half of global oil production