It’s IAIB’s chief Marat Kabaev who should lobby for changes in Russian laws for Islamic banking appearing: representative of IDB

SAMARA, Oct 4, 2019, Pan Pacific Agency. There is still no Islamic bank in Russia, because there is no “political will”, Samir Tagiev, Senior Regional Manager for CIS region at Islamic Corporation for the Development of the Private Sector (ICD, is part of the Islamic Development Bank), said at the International Volga Investment Summit & World Halal Day in Samara, Russia.

“Everyone in the State Duma of Russia is aware of the Islamic banking for a long time. If they give their political “okay”, we will prepare all the necessary technical details for the Bank of Russia. There is no need to create new legislation for banks to be able to work according to Islamic standards. It’s enough to adapt the existing norms,” Samir Tagiyev said, reported the Pan Pacific Agency.

As an example of such a decision, he cited Great Britain – not an Islamic country without Islamic law, the country in which Islamic banking operates. Islamic banking, we recall, prohibits interest-bearing loans and financial speculation (prohibition of usury). Islamic banks do not pay income on deposits, except for the percentage of inflation, and do not issue classic loans using other forms such as installments, leasing, equity. Several years ago, a protocol of understanding and cooperation between the Islamic Development Bank and the Bank of Russia was signed, and a working group on the development of Islamic finance was formed under the Bank of Russia.

Replying to a question from Madina Kalimullina, Managing Partner of Alif Consult and the Executive Secretary at the Russian Association of Islamic Finance Experts, if there someone who can “lead the Russian bankers by the hand” in the development of Islamic banking, Samir Tagiyev said:

“The Islamic Development Bank is a huge bank represented in 56 countries. Frankly speaking, everyone wants to get funding. Therefore, we need one person from Russia who becomes a pioneer and will lobby for the Islamic Bank to be active here. We all know this person, his name is Marat Kabaev. That is why we are waiting for his actions. We need activation from you, and we will always support”.

“Thank you for your kind words. On November 27-28, Ufa will host the second Islamic Finance Forum. I think we’ll talk about it there,” answered Marat Kabaev, President of the International Association of Islamic Business.

In 2018, at the International Economic Summit “Russia – Islamic World: KazanSummit,” Alexander Torshin, Deputy Chairman of the Bank of Russia said that the regulator does not intend to change existing Russian legislation to develop Islamic banking, since it already “fully allows the usage” of Islamic finance standards. A month ago, the chairman of the Russian Muftis Council, Ravil Gainutdin, told TASS that Russia lags behind in the development of Islamic banking even over some countries of the Central Asia, and that, “unfortunately, there is no progress” in the development of cooperation between the Bank of Russia and Islamic Development Bank.

Russian version of this article is available here.

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