Russia-Ukraine crisis and spike in global crude prices are a challenge to financial stability in India, Finance Minister Nirmala Sitharaman said on Tuesday.
Sitharaman, who is on a two-day visit to the financial capital, said that the two issues (Ukraine and crude) were discussed at the meeting of Financial Stability Development Council (FSDC), which comprises all the financial sector regulators.
She said it was difficult to say how crude prices will go. “Even today, in the FSDC, when we were looking at the challenges which are posed for the financial stability, crude was one of the things,” she said.
Referring to ongoing conflict between Russia and Ukraine, Sitharaman said “international worrisome situations where we actually voiced that we want a diplomatic solution for the situation that is developing in Ukraine… all these are headwinds”.
The brent has touched over $96 per barrel on Tuesday, she said, adding that the country is keeping a watch on the same. The finance minister said the oil marketing companies will take a call on the retail prices.
Amid fear in traders community due to the tensions, Sitharaman said trade has not been impacted but the government is keeping a close watch on the same. We are careful that the exporters should not suffer, she said.
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