Russia's Deputy Prime Minister Arkady Dvorkovich has criticized Finance Ministry proposals to increase tax receipts from oil companies, saying on Sept. 24 the measures would undermine the whole oil industry.

Russia is seeking ways to replenish state coffers hit by an economic downturn, due to the plummeting price of oil, its main export, as well as international sanctions over Moscow's role in the Ukrainian conflict.

"The changes in such sensitive sectors should be moderate and carefully made," Dvorkovich told reporters. "It is unrealistic the way the finance ministry had proposed it, this would lead to gravest consequences for the (oil) industry."

The Finance Ministry last week proposed changing the mechanism for mineral extraction tax (MET) calculation to bring in about 600 billion roubles (US $9 billion) in additional revenue in 2016.

The proposal has already attracted criticism from the economy and energy ministries, which warned it could hit oil output.

Russia's economy is expected to shrink by between 3.9 and 4.4 percent this year and the government is looking for additional sources of revenue.