VTB to introduce Islamic banking in Russia

Baku, Fineko/abc.az. Development of Islamic financing in the CIS member countries will be carried out through two key banks.

At the closing ceremony of the IV Baku International Banking Conference Andrey Kazakov, chairman of the Coordination Council of the CIS Financial & Banking Council (FBC), has stated that they will seek to establish Islamic banks in Russia and Azerbaijan.

“Yesterday, we talked with VTB Bank’s president Andrey Kostin and he said that VTB would conduct work on establishment of an Islamic bank and prepare the relevant documents. The International Bank of Azerbaijan has done its preparatory work,” Kazakov said.

IBA Islamic Banking Group’s head Behnam Gurbanzadeh has said that on the advice of consultants for the first time in the worlds the IBA will introduce Islamic banking by creating a specialized mini-bank inside the Bank itself.

“Islamic banking can be considered as a form of IBA retail operations. Its introduction corresponds to the strategic priority of the Bank, positioning itself as a national development bank,” Gurbanzadeh said.

The FBC has identified Azerbaijan as a regional center to introduce Islamic banking on the CIS area and the IBA as the head of the FBC working group on preparation of Islamic banking introduction in the CIA banks.