Ukraine crisis and jump in crude prices pose challenge to financial stability, says Nirmala Sitharaman

Mumbai: Finance minister Nirmala Sitharaman on Tuesday said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. The two issues were discussed at the meeting of Financial Stability Development Council (FSDC), which comprises all the financial sector regulators, Sitharaman told reporters. “It is difficult to say how it (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. 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,” Sitharaman, who is on a two-day visit to the financial capital, said. She said the brent has touched over $96 per barrel on Tuesday and added 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. Trade has not been impacted because of the geopolitical tensions but the government is keeping a close watch on the same, Sitharaman said adding that we are careful that the exporters should not suffer. Parrying questions on the exact timeline for the LIC IPO, she said there is a buzz and interest in the market after the life insurance behemoth filed its papers with Sebi for the over Rs 60,000 crore issue, and the government will be going ahead with it. She also said that the government is looking into the lapses that happened at the NSE.