The Use of Infrastructure of Partner (Islamic) Finance Institutions to Build Mechanism of Raising Investment of Islamic Investors to Russian Projects

Abstract

The article studies issues of using alternative finance solutions, in particular, partner finance institutions to implement various Russian projects in the context of limited access of Russian business-structures to western finance markets. The article shows preconditions of developing Islamic finance institutions in Russian practice and grounds lines of development of investment cooperation of Russia and Islamic countries of the Middle East and South-East Asia within the frames of using infrastructure of partner finance institutions. Methodological tools of the research include analysis of public factual account concerning the development of Islamic finance and functioning of Islamic finance institutions in Russia. The research showed that today Russia possesses potential for the development of Islamic finance, however, this market has not reached full-scale extension on the territory of Russia due to certain facts hindering the development of Islamic finance infrastructure. It is obvious that to allow Islamic investors with their capital to enter Russian market it is necessary to create efficiently functioning conditions within the frames of legislative base, taxation system, organizational infrastructure and system of foreign investment protection. These conditions shall be provided by Russia in the near future. In view of promoting mechanisms of partner financing a special role shall be played by experiment of testing partner (Islamic) finance in Russia aimed at supporting energetic development of tools of partner financing for legal entities and individuals, creating infrastructure for Islamic finance institution functioning and raising Islamic investment capital.

Keywords

• islamic finance model
• islamic finance institutions
• finance tools
• sharia
• friendly countries
• sanctions