Russia is eyeing adjustments to financial
legislation to allow Islamic finance as it battles against
harsh economic sanctions. But the take-off has been sluggish,
according to market participants, in part due to poor wider
Coupled with a long recession, Western sanctions
have put the Russian economy under pressure and seen the
Kremlin looking east for investment.
While a draft law allowing for alternative finance was
submitted to parliament’s lower house, Duma, back
in March, the finance ministry reportedly rejected the bill in
May. But Dmitry Dembich, a partner at Baker &
McKenzie’s Moscow office, said that there has been
little outspoken resistance to the idea. "It’s
just not at the top of the government’s priorities
right now," he...