Russia to launch pilot project to introduce Islamic banking in Chechnya and Dagestan

A pilot project to introduce Islamic banking will be launched in Dagestan and Chechnya in 2023.

Currently, the Russian Central Bank, together with the Ministry of Finance, is preparing amendments to the legislation that will allow the project to be launched in a pilot mode, Interfax reports with reference to the press service of the Bank of Russia.

Based on the results of the experiment, the financial authorities of Russia will decide whether it is worth extending a similar system to other regions.

Islamic banking could be legalized in Russia, which implies the absence of any interest income, the Kommersant newspaper reported in the first half of July referring to the draft law “On Partner Financing Activities” and two relevant bills to it.

Two days later, Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market and author of the draft law on Islamic banking, said that Islamic banking in Russia is planned to be introduced in the fall with the help of partner financing institutions (PFIs).