As Russian troops, on February 24, launched an attack on Ukraine, government sources reacting to the major development tell CNBC-TV18 that the Centre was closely monitoring the rapidly changing situation in and around Ukraine.
Sources also say the upcoming initial public offering (IPO) of Life Insurance Corporation will go ahead as planned, adding the government has time till March First week to take any decision on it.
"Don't see an impact on LIC IPO plan for now," sources say.
Government sources also assert India is prepared to deal with any situation arising out of global developments, and they don't expect the impact of the crisis to be severe on the Indian economy.
Reacting on whether the invasion of Ukraine by Russia could have repercussions and drive up uncertainty, sources tell the geopolitical tensions potentially push up interest rates and also inflation but these could still be manageable.
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Sources also add that an increase in borrowing costs, if any, could be manageable. It is also mentioned that any escalation of the global situation may demand oil supply to boost more rapidly from the Organization of the Petroleum Exporting Countries (OPEC) and allies.
On the Iranian oil export hopes, it is said there could be a possible revival on this front as this could restore the country's supplies.
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Russian President Vladimir Putin announced a special military operation in Ukraine as weeks of diplomacy to avert war and sanctions on Russia failed to deter Vladimir Putin, who has amassed over 150,000 troops on the Ukraine border.
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The Indian embassy in Ukraine said the present situation in Ukraine is highly uncertain. "Please maintain calm and remain safe wherever you are, be it in your homes, hostels, accommodations or in transit."
Expressing concern over ongoing tensions between Russia and Ukraine, India on Thursday said that the situation is in danger of spiralling into a major crisis which may undermine the peace and security of the region.
India's Permanent Representative to the United Nations TS Tirumurti reiterated India's call for immediate de-escalation of tensions.
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