Russia Considers Adoption of Islamic Banking Via Non-credit Financial Institutions Regulated by the Central Bank  

The Russian Federation (Russia) is in the process of drafting a new law regulating Islamic banking in the country in an effort to entice investors from Muslim-majority countries and fulfill local demand, as reported by the Russian newspaper Kommersant.

Why it Matters?

The introduction of Islamic banking in Russia has long been a topic of discussion. According to the Chairman of the State Duma Committee on Financial Market, Anatoly Aksakov, submission of the draft law to the Lower House could take place by the end of the week. As per the new law, non-credit banking institutions would function as financing partnership organisations (FPOs) and provide their clients with financial solutions that adhere to Shariah. The proposed legislation would also allow...