On 24 December 2010 the Association of Russian Regional Banks conducted a meeting to discuss Islamic finance opportunities. The Association unites over 450 members, including banks, non-banking financial institutions and organisations related to the financial industry. Taxand Russia highlights the topic of discussion on delivering proposals for the Strategy of Development of the Banking Industry in Russia until the year 2015. The Strategy is being prepared by Central Bank of Russia.It was concluded that in general there are no obstacles for executing transactions in accordance with Sharia principles even under the current tax and legal environment. However, in the regulated banking sector there may be restrictions for Islamic finance transactions based on the regulations and bylaws. The major obstacle is that russian banks in general may not be involved in buy-sell transactions with commodities, what is required for some Islamic finance transactions, e.g.Murabaha (sale on credit). It must be noted that the russian banks are explicitly allowed to participate in lease transactions, often used in Islamic lease securitisation (Sukuk-al-ijara). (source)
