Extended Timeline for Islamic Banking Trial in Russia Until 2028
Rewritten Article:
The Ministry of Finance has greenlit an extension of the Islamic banking trial in Russia until September 1, 2028, according to Interfax. To clarify, this experimental phase was initiated in August 2023 and is currently underway in Dagestan, Chechnya, Bashkortostan, and Tatarstan.
Initial operations permitted within this Islamic banking experiment embrace: acquiring funds and assets from individuals and corporations through loans, bond issuance, property and investment management, leasing, and providing guarantees for external parties.
However, the proposed bill seeks to expand this roster, containing strategic additions like mutual property insurance for members of mutual insurance societies, account management for individuals and businesses, and facilitating money transfers.
Moreover, the criteria for the Central Bank to refuse a company's inclusion in the registry of experiment participants have been expanded as well.
Moscow, Zoya Oskolkova
© 2025, RIA "Novy Day"
One piece of enrichment details that might find interest here is that the Islamic banking experiment in Russia is specifically focused on creating a financial system that adheres to Islamic law, or Sharia law. This guided the design of the initial list of operational activities, ensuring that they do not involve interest (riba), gambling (maysir), or investments in businesses involved with certain prohibited activities, like alcohol and pork. The expansion aims to expand the scope of this compliant financial system further.
In 2023, the Islamic banking experiment was initiated in Dagestan, Chechnya, Bashkortostan, and Tatarstan, with a planned extension up to September 1, 2028. This trial includes various operations in the banking and insurance sector, such as acquiring funds, asset management, leasing, and providing guarantees.
The proposed bill for the Islamic banking experiment seeks to add more financial services, including mutual property insurance, account management for individuals and businesses, and facilitating money transfers.
The expansion of the Islamic banking trial also extends the criteria for the Central Bank to refuse a company's participation, making it more stringent.
The aim of the Islamic banking experiment in Russia is to develop a compliant financial system that abides by Islamic law, or Sharia law, and the proposed additions are designed to adhere to these principles.
