Tatfonbank to open first Russian Islamic bank in Kazan next month

The first Russian Islamic bank will open in the Tatar capital  of Kazan next month as a joint pilot project between Tatfonbank and Tatagroprombankom,  “This will be the first bank in the country whose work is completely compatible with the principles of partnership funding [that are already] widely used in many countries of Southeast Asia and the Middle East,” Tatfonbank confirmed in a press release today.
The bank will offer services for individuals, legal entities and foreign investors and will provide both traditional financial services and those that adhere to the conventions of the Organization of Islamic Cooperation, the press release continued.
Islamic finance is based on Shariah principles which forbids the charging of interest on loans, but instead provides for equity participation and full risk sharing in the projects in question. Shariah law also forbids trading or profiting in a range of  activities, including anything to do with alcohol, tobacco or military equipment.

Source: Interfax