IslamicFinance.de

Russia's Vnesheconombank (VEB) and the Islamic Development Bank (IDB) Group will establish a Partnership Fund. According to VEB Chairman Sergei Gorkov, the joint fund will be based on the principles of Islamic finance and will aim at promoting investment in the Russian economy and financing high technologies. The joint contribution of VEB and the IDB Group to the fund's capital will amount up to $100 million. Third-party investors will be involved as well. Gorkov added that the Middle East market is one of the strategic areas of cooperation for Vnesheconombank. It plans to open a representative office in Abu Dhabi, the United Arab Emirates, and create a Russian business desk there. It will provide access to sales and capital markets in the region and create opportunities for partnership with local players.

Russia is hoping to close deals shortly to attract Islamic banks to invest in Russia to help make up for a shortfall in international finance caused by Western sanctions. The head of Vnesheconombank Sergei Gorkov said funds invested by Islamic banks will be used for infrastructure projects in the country. He added that that Russia is expected to close its first deals to attract Islamic capital in the autumn of 2016. However, the active introduction of Islamic banking is opposed by some Russian lawmakers.