The ministry’s latest estimates place Russia’s Islamic banking market near one trillion rubles, according to Deputy Minister of Finance Ivan Chebeskov. The estimate highlights a potential shift in the country’s financial landscape as banks and non-bank entities explore Sharia-compliant financing options. The information was reported by TASS.
Chebeskov noted that the ongoing experiment of introducing Islamic finance will persist and be integrated into the broader plan to develop the financial market through 2030. The aim is to test products, strengthen liquidity, and expand access to financial services that comply with Islamic principles, while maintaining alignment with overall macroprudential safeguards.
At present, the Central Bank lists 23 entities operating under Islamic finance principles. In recent months, more than 15 new registrations have occurred, and Chebeskov pointed to more than 50 potential participants identified by the business community. This signals rising interest among banks, asset managers, and other financial firms.
Russia’s Islamic banking initiative began on September 1, 2023. The model features the absence of interest income, limits on excessive risk, and restrictions on investments in certain industries that are not permissible under Islamic law. The framework aims to harmonize financial innovation with ethical standards while supporting economic diversification.
Earlier, the Central Bank contributed changes to the Islamic banking experiment, adjusting supervisory rules, clarifying eligibility criteria, and incorporating feedback from participants. These steps are part of a gradual rollout designed to reduce risk while inviting broader participation and ensuring compliance with both domestic requirements and international best practices.
Industry observers note that the ongoing program may reshape funding channels for compliant projects, particularly in sectors with sustainable demand and transparent governance. The effort is seen as a long-term project that could broaden consumer choices and spur competitiveness in Russia’s financial system, with continued attention to risk controls and market integrity ahead of the 2030 horizon.