On September 1, a significant development occurred in Moscow as Islamic banking made its debut in Russia, bringing immense joy to the Muslim community, who expressed their gratitude towards President Vladimir Putin.
As reported by the World News Agency, President Vladimir Putin officially endorsed the legislation for Islamic banking on August 4. This landmark decision has been implemented in a country with a Muslim population of approximately 25 million.
Members of the Muslim community in Russia extended their appreciation to President Vladimir Putin for taking this initiative, asserting that Islamic banking has become a pressing necessity. It’s worth noting that while some Islamic financial institutions were already operating in Russia, this marks the first time that Islamic banking has been introduced on an official level.
Initially, the launch of Islamic banking has been concentrated in regions with a significant Muslim majority, including Tatarstan, Bashkortostan, Chechnya, and Dagestan. Should this pilot program prove successful, there are plans to expand it nationwide.
The demand for Islamic banking within the Muslim population had been a longstanding request, but external factors such as the ongoing Ukraine conflict and pressure from Western countries on Russia’s economic sector played a role in prompting President Putin to initiate Islamic banking.
It’s important to note that Islamic banking adheres to Sharia law, which strongly discourages transactions involving interest, as interest is considered an unfair exchange of funds.
