IslamicFinance.de

As Russia's 20 million Muslims observe Ramadan, the country's banks are beginning to wake up to the growing opportunities offered by Islamic banking. Last summer VTB Capital opened an office in Dubai. The bank also plans to launch other Islamic projects, investing in Russian property together with the Sultan of Oman's State General Reserve Fund. However, there are still major obstacles to developing Islamic finance, including a lack of banking legislation that meets Islamic rules.

Oksana Kobzeva reported on 18 March on ArabianBusiness that Russia's second largest bank VTB may become the country's first issuer of sukuk. VTB Capital and Liquidity Management House, a subsidiary of Kuwait Finance House, on Wednesday signed a protocol of intention aimed at cooperating in the development of Islamic finance in Russia and other former Soviet countries.

VTB Capital is headed Yuri Solovyov