In an important development, Russia is introducing Islamic banking for the first time under a two-year pilot program starting September 1st.
The law’s public support is another step forward for the country, which already has Islamic financial institutions serving Russia’s sizeable Muslim population, estimated at up to 25 million.
The launch of the Islamic Bank was marked by Russian President Vladimir Putin signing a law on August 4 emphasizing its “feasibility” assessment.
The pilot program will initially be rolled out in four Muslim-majority republics: Tatarstan, Bashkortostan, Chechnya and Dagestan. These regions already have extensive experience in Islamic finance. If the pilot program is successful, the new regulatory framework will be expanded nationwide.
