On September 1, a two-year pilot program in Russia will introduce Islamic banking for the first time.
Islamic financial institutions have been present in Russia, where there are a significant number of Muslims (up to 25 million), but this is the first time the country's legislation has formally supported their establishment.
Vladimir Putin, the president of Russia, approved a bill establishing Islamic banking on August 4 in order to determine its "feasibility."
The pilot program will take place in four Muslim-majority republics – Tatarstan, Bashkortostan, Chechnya, and Dagestan, areas that already have the most experience in Islamic finance.
If the program proves to be successful, the plan is to introduce the new regulation to the rest of the country.
Islamic financial institutions have been present in Russia, where there are a significant number of Muslims (up to 25 million), but this is the first time the country's legislation has formally supported their establishment.
Vladimir Putin, the president of Russia, approved a bill establishing Islamic banking on August 4 in order to determine its "feasibility."
The pilot program will take place in four Muslim-majority republics – Tatarstan, Bashkortostan, Chechnya, and Dagestan, areas that already have the most experience in Islamic finance.
If the program proves to be successful, the plan is to introduce the new regulation to the rest of the country.
