Russia Sanctions Spur Bank Drive for Shariah Funding Role

Sanctions on Russia over the crisis with Ukraine are leading banks to call for the development of Islamic finance as they seek alternatives to European and U.S. pools of funding.

The expansion of the Shariah-compliant industry would let the country attract fresh capital from the Middle East and Asia, the Association of Russian Banks said this week in response to an inquiry from the state bank. The Bank of Russia should develop rules for Islamic banking, the association said.