Russia considers turning to Islamic banking over closing of ...| MENAFN.COM

Tuesday, 28 March 2023 01:38 GMT

Russia considers turning to Islamic banking over closing of Western economic markets

(MENAFN) Russia on Wednesday will begin a new pilot project on applying Islamic economic practices in several regions with Muslim-dominated population.

The experiment will be held in Dagestan, Chechnya, Bashkiria and Tatarstan and will last for two years. After that, the experts will decide on the appropriateness of the Islamic model for Russia.

Alexandr Kazakov, a senior specialist at the Russian Association of Experts in Islamic Finance, told Anadolu that it is "time to forget" regarding the Western economic markets and focus on collaboration with the Arab and Asian nations.

"At the corporate level, it is already obvious that all Western financial centers are closed to Russian capital, we have no choice but to develop affordable alternatives. It's time to forget about the existence of London and concentrate on Beijing, New Delhi, Singapore, Kuala Lumpur and the Gulf countries," the expert added.

Kazakov went on to say the State Duma passed in the first hearing the bill on partner financing, where the term "partner financing" proposes economic products according to Islamic principles.

“Once it is adopted, the existence of alternative financial instruments will be recognized at the legislative level in Russia. This is an important political step both within the country and in relation to our real foreign partners," he added.


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