Islamic finance seduces Moscow

The Russian Parliament is studying the introduction of Islamic finance for 2025, first targeting the predominantly Muslim regions of Tatarstan and Dagestan. This announcement by the Chairman of the Financial Markets Committee, Anatoly Aksakov, marks a significant development in the national banking system.

Faced with Western restrictions, Moscow is seeking to attract investors from Muslim countries to a halal finance market estimated at $3,000 billion. This system, which prohibits interest and speculation, could open up new economic perspectives.

At the same time, the Kremlin is strengthening its ties with the United Arab Emirates, Saudi Arabia and Turkey, thus developing an alternative to traditional financial circuits. This strategy is part of a broader movement of economic reorientation towards the East.

This initiative echoes experiences already carried out in Malaysia and Indonesia, where Islamic finance coexists with the conventional banking system. Russia could draw inspiration from these hybrid models which have demonstrated their effectiveness, particularly in attracting investments from the Gulf. The integration of these Islamic banking principles will, however, require a substantial overhaul of Russian law, in compliance with current international regulations.