There is no change in plans for the initial public offering (IPO) of Life Insurance Corporation of India due to the Russia-Ukraine geopolitical crisis, government sources told CNBC-TV18 on Thursday.

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They said they don’t see an impact of the Russia-Ukraine conflict on the LIC IPO plan for now but are closely monitoring geopolitical developments as well as the market situation. The IPO is likely to hit the D-Street in March in which the government is looking to sell a 5 percent stake in the public sector insurer.

The remarks come at a time when Ukraine says Russian President Vladimir Putin has launched a full-scale invasion of Ukraine and peaceful cities are under strikes. The General Staff of the Ukrainian Armed Forces has claimed five Russian aircraft and a helicopter were shot down early Thursday, as Russian forces attacked Ukraine.

Meanwhile, the Russian military has denied the claims and said that it has knocked out Ukraine's air defence assets and airbases, according to local reports. The infrastructure of Ukraine's military bases has been incapacitated, the Russian Defence Ministry said.

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The impact of the war on the Indian economy is unlikely to be severe, the sources cited above said, adding that the government is fully prepared to deal with any emerging contingency on account of the Russia-Ukraine conflict.

They said inflation and interest rates may rise but the situation is expected to be manageable. The government can manage higher borrowing costs if any, they added.

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According to sources, oil price pressure may force the Organization of the Petroleum Exporting Countries (OPEC) to step up production. The issue of Iran being allowed to export oil may get revisited if the Russia-Ukraine conflict escalates. The remarks come as oil today crossed the $100 a barrel mark for the first time since 2014 as Russia moved troops into Ukraine.

Follow latest updates on the Russia-Ukraine conflict here

(Edited by : Kanishka Sarkar)