Vestnik Kavkaza
Because of the sanctions, access of Russia to financial markets appears to be closed, perhaps for several years.
According to some sources, in searching for new markets, Moscow is preparing, like London, to introduce the Islamic model into its financial system. Islamic finances are increasingly extended beyond Muslim countries - not only in the United Kingdom, but also in the US, Canada and Europe. But Russian companies and banks began to turn to Islamic banking after the fall of the ruble.
Nevertheless, Islamic banking in Russia is covered with myths. Adjunct Professor at the University of Michigan (USA), the supervisor of the Gaidar laboratory of empirical studies of financial markets of the Institute for Economic Policy, Andrei Simonov, spoke about the basics: "Islamic finance is only for Muslims. No one but Muslims and, as it is still sometimes said, radical Muslims, can ever get anything from this. Islamic finance is not in profit. In general, it is unclear how the banking sector in a rather large number of the countries can exist without being in profit. And thirdly, that Islamic finance is an artifact of the Middle East and, accordingly, no one except the Middle East should be involved in it. In my view, any financial sector exists to make profit, like any economic activity."
According to Andrei Simonov, Islamic banking is an example of what can exist without a fixed rate, and Russia should take the opportunity to receive funds within the boundaries of such a system.
The population of Russia about 20% Muslim. "Let us assume that half of them use conventional products, and the other half would like to use Islamic products. When we engage this population in the banking system, we will all benefit from it. The financial industry can gain new tools."
Simon called fears that the funds of Islamic banks will finance the terrorist group Islamic State as unjustified: "There is potential supervision and it is quite realistic to control what is happening in Islamic finance when that exists."
While Western financial markets may be closed for a few years for Russia, the Middle East markets remain open.
Islamic banking is relevant to Russia for at least one more reason. This is loan rates. According to the Turkish newspaper Stratejik Dusunce Enstitusu, Vnesheconombank has already begun consulting with Middle Eastern financial institutions on the issue of placement of Islamic bonds called Sukuk.
According to a freelance adviser to the Prime Minister of Tatarstan on Islamic finance, Linar Yakupov, "sukuk would allow us to make a complete mechanism to attract investment from the Middle East and Southeast Asia, where today a lot of money is really accumulated, and these funds are mainly directed at projects in countries with developing economies... We can consider this tool as an alternative source of raising funds to finance infrastructure and investment projects. On the basis of the mechanisms that exist, it does not require changes to existing legislation in the field of investments and securities. Most of the sukuk issued does not involve sale assets, although many business owners and regional authorities fear that assets may disappear somewhere."
According to Yakupov, now Russia conditions are not conducive to widespread sukuk in the country, but in many countries it is already actively practiced: "If, before the start of the 2000's, sukuk was only about 237 million dollars, by the beginning of 2006 it was already $27 billion. In the past year it has almost reached the mark of $117 billion. In 2014, the debut emission was made in Hong Kong, Senegal, South Africa, Luxembourg and the UK. Next it was represented in South Korea, Japan, the USA, Morocco, Kenya Tunisia and Bangladesh ... and we need to make every effort for Russia to enter this list. "
