Russia to allow Islamic banking amid ongoing sanctions by western world

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Vladimir Putin

By Muslim Mirror Staff

Russian authorities are set to legalise Islamic banking amid ongoing sanctions by the US and European countries. The country looking forward to attract investors from Muslim-majoritiy countries as well as cater to domestic customers by allowing Islamic banking.

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Russian daily Kommersant reported that the non-credit banking institutions would operate as financing partnership organisations (FPO) and offer Sharia-compliant financial products to their customers.

The FPOs would operate under Russia’s Central Bank, according to the report.

The draft law is likely to be submitted to the Russian parliament soon.

Islamic banks operate as per religious guidelines and bans interest payments to investors and customers.

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