Islamic Finance in Russia: Between Past and Future

Russia interested in alternative partnership finances as early as the 90s of the XX century. The first attempts to apply the principles of Islamic finance were made by individual banks. The second wave of initiatives began after the global financial crisis of 2008–2009, with increasing interest in 2014 in the face of a complicating foreign policy situation and the imposition of economic sanctions. In such conditions, it became necessary to search for alternative sources of attracting investment, which, inter alia, became Islamic finance. From 1992 to the present, Russia has gained some experience in Islamic finance. This article provides a comprehensive review of the more than 25-year history of the development of the Islamic financial market in Russia in the context of the analysis of its problems and prospects. After introducing the main definitions, concepts, features and principles of Islamic finance, as well as citing numerical and geographical data on the industry, the author describes all the initiatives for the development of Islamic finance in Russia, divided into 4 levels: international, federal, regional and individual. The history of the development of the Islamic financial market in Russia is presented in chronological order with a division into industry components and Russia’s experience in developing each of them — Islamic banking, Islamic insurance and the Islamic capital market. At the end, a brief analysis of the current state of the Russian Islamic financial micro-market is made and the main opportunities that Islamic finance can give Russia are also indicated.