New Delhi: Sudden jump in crude oil prices amid escalating tension between Ukraine and Russia, pose threat to India's financial stability and the government is closely monitoring the situation, said Union Finance Minister Nirmala Sitharaman.
She said this while speaking to media after the Financial Stability and Development Council (FSDC) meeting here on Tuesday.
''The situation is worrisome and India has called for a diplomatic solution to the Ukraine-Russia crisis.
Commenting further on challenges posed by the rise in crude oil prices to the Indian economy, the Finance Minister said, '' As of now we can't say how it will go. Even in the FSDC meeting today, we were looking at the challenges which are posed for the financial stability, crude was one of the things''.
Amid the tension between the two countries, crude oil prices surged to $100 per barrel in the international markets on Tuesday.
According to reports, the United States and its European allies are set to impose new sanctions on Russia after President Vladimir Putin formally recognized two breakaway regions in eastern Ukraine.
Interestingly, Russia's troops are present in the breakaway region which is likely to further escalate the tensions in the region.
The Finance Minister earlier chaired the 25th meeting of the Financial Stability and Development Council (FSDC) The Council noted the need for a constant vigil on financial conditions and the functioning of financial institutions in the country.
"The Council deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments," Finance Ministry said in a statement.
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