- Home
- Live Blog
- Breaking News
- Top Headlines
- Cities
- NE News
- Sentinel Media
- Sports
- Education
- Jobs
New Delhi: Despite appeal from global leaders to de-escalate the crisis, on Thursday morning, Russia attacked the Ukraine as they bombed Ukraine military base as well as Navy base. Meanwhile, Joe Biden has threatened Russia of imposing sanctions.
What US will do or not do in this regard, the future will tell us. Meanwhile, the outbreak of the war over Ukraine can have detrimental effects across the world. Soon, after Russia attacked the Ukraine, its impacts were seen on equity market, crude oil prices and commodities.
Since, the tension has between the duo has already taken a form of war, lets us look at list of what may get more expensive in India.
According to statistics by the US Energy Information Administration, in 2020, Russia was the third-largest producer of oil, with an estimated production level of 10.50 million barrels per day. Since, now the both countries are on war, crude oil and natural gas prices are set to witness a jump. As per the reports, the price of crude oil is hovering around $100 a barrel presently.
Since, India imports about 80 percent of its energy needs through oil imports could be one of the worst affected nations in this crisis. Interestingly, rising energy imports will also lead to widen the country's current fiscal deficit.
According to a report in The Deccan Herald, Ukraine is responsible about 70 percent of India's sunflower oil imports. The rising sunflower prices could also push the prices up of other edible oils as well.
The rising crude oil prices may lead to an increase in the price of LPG cylinders and kerosene as well.
As mentioned above, if the energy price rises, then in that case it will also lead to a surge in prices of electricity production, which in turn will lead to higher electricity bills for consumers.
Both Russia and Ukraine are two of the world's largest wheat producers and account for about a quarter of the crop's global production. Any disruption in the global supply of the crop due to war can lead to a steep surge in food prices.
According to reports, Russia is the largest exporter of palladium, which is used in a range of products from mobile phones to automotive exhaust systems. Any disruption in the supply of the metal due to sanctions could lead to a huge disruption in the supply chain of these products, pushing their prices up.
Recently, Union Finance Minister Nirmala Sitharaman had said that 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.
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 had 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''.
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.
Also read: ITBP Mountaineers Climb Mount Karzok Kangri In Harsh Weather
Also watch: