#Russia makes further steps into the world of Islamic banking

Vnesheconombank, Sberbank and Tatfondbank are going to take part in the 23rdWorld Islamic Banking Conference in Bahrain from 5 to 7 of December 2016. The three banks are working on launching Islamic finance products to get access to the investors from the Gulf countries and Southeast Asia. According to Linar Yakupov, head of the Association of Regional Investment Agencies of the Russian Federation, there is growing interest from other 20 Russian banks. However, the current legislation system of Russia complicates the progress. It forbids banks from engaging in commercial activities, so they can operate only a limited range of assets.

Islamic finance gets strong growth momentum in #Russia

Russia continues to open new avenues and to provide new instruments for international investors through Islamic finance. Representatives of major banks and a high official of the Russian central bank will partake in the 23rd World Islamic Banking Conference in Bahrain’s capital Manama. The reason why Moscow is increasingly opening up to Islamic finance lies mainly within its quest to make up for a shortfall caused by Western sanctions. Three state-linked Russian banks, Vnesheconombank, Sberbank and Tatfondbank have all signed agreements with the Islamic Development Bank (IDB) in order to launch Islamic finance products. Maxim Osintsev, executive director at Sberbank, said there was now political will for Islamic finance to be developed in Russia. The ice has broken and people now understand that Islamic banking products can be in demand.

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