Islamic finance: Tools and prerequisites for development in Russia

Subject. The article investigates the instruments and prerequisites for the development of Islamic (partnership) financing in Russia. Objective. The purpose of the study is to disclose the instruments of Islamic financing, to make practical recommendations for its development in Russia. Methods. The study employs general scientific methods of knowledge, like analysis and synthesis, comparison and generalization, induction and deduction. The information base consisted of analytical materials of the Islamic Corporation for the Development of the Private Sector (ICD) and the Analytical Center under the Government of the Russian Federation. Results. The paper reveals the features and key principles of Islamic financing, describes the main Islamic financial instruments, identifies the main trends in the development of the global Islamic finance market. Furthermore, it considers the world experience and domestic practice of Islamic finance development, underpins factors hindering the introduction of partnership financing in the Russian economy, formulates practical recommendations for Islamic (partnership) financing development in Russia. Conclusions. Islamic finance in Russia is characterized by the initial stage of its development. In modern realities, the introduction of Islamic finance is the most important vector of development and transformation of the national financial system of Russia. Prospects for the development of Islamic finance in Russia envisage the creation of favorable conditions and appropriate institutional infrastructure.