15-05-2025
- Business
- New Straits Times
Tatarstan keen to adopt Malaysia's Islamic finance framework
KAZAN: Tatarstan has expressed keen interest in adopting Malaysia's Islamic finance model as it seeks to formalise and expand Shariah-compliant banking practices within the Russian Federation.
In a meeting with Prime Minister Datuk Seri Anwar Ibrahim at the Kazan Kremlin today, Rais (head) of Tatarstan Rustam Minnikhanov said his government was "serious about learning from Malaysia" in the area of Islamic finance.
"We are very interested to explore Malaysia's experience in Islamic banking," Minnikhanov said during a 10-minute exchange with Anwar, who had just arrived in Kazan from Moscow.
Tatarstan was chosen as one of four pilot regions for Russia's two-year Islamic banking experiment launched in 2023, alongside Bashkortostan, Chechnya and Dagestan.
The republic has since emerged as the frontrunner, accounting for more than half of the total Islamic finance turnover under the pilot scheme.
"Our republic is a pilot region for the implementation of Islamic partnership banking in Russia," said Minnikhanov.
"We are also doing a lot of work in developing the halal industry. These are promising areas for cooperation. We learn from you, adopt the best practices."
Anwar, who arrived in Kazan around 1pm following high-level talks in Moscow, welcomed the enthusiasm and reaffirmed Malaysia's commitment to supporting Islamic economic development in the region.
"My team and I are ready to discuss trade and economic issues, the introduction of Islamic banking and the development of the halal industry," Anwar said.
"Tatarstan has enormous potential and a large number of proposals. We are ready to work and develop our ties."
Anwar's visit to Kazan marks the second leg of his four-day official trip to Russia, which began in Moscow on May 13.
While in the capital, the prime minister met with Russian President Vladimir Putin and Prime Minister Mikhail Mishustin, with economic and strategic engagement topping the agenda.
He was also conferred an honorary doctorate by the Moscow State Institute of International Relations.
In Kazan, the prime minister is scheduled to deliver a keynote address at the 16th KazanForum and participate in the Strategic Vision Group Russia–Islamic World dialogue.
The forum is seen as a key venue for advancing Islamic economic partnerships between Russia and Muslim-majority countries.
Minnikhanov described Anwar's presence at KazanForum as an honour for Tatarstan.
"It is gratifying that a solid delegation of business circles is participating in the forum with you," he said.
"KazanForum has been held in federal status for three years now and is the main platform for establishing cooperation between Russia and the countries of the Muslim world."
Tatarstan and Malaysia have also expanded ties in trade, youth development and culture. A joint youth camp involving 200 teenagers from both countries is planned for this autumn in Kuala Lumpur.
The programme builds on the Tatarstan delegation's visit last year to the Malaysian National Youth Council, once chaired by Anwar himself.
Prior to the meeting, Minnikhanov presented Anwar with an English-language collection of poems by celebrated Tatar literary figure Gabdulla Tukai, symbolising the deepening ties between the two regions rooted in both economics and culture.
Tatarstan has been a trailblazer in Russia's Islamic finance push.
It hosts Russia's first official Islamic university and key initiatives like the Russian Centre of Islamic Economics and the Halal Industrial Park "Baltach", which operates fully under Islamic finance principles.
Efforts are underway to align with international standards, such as those set by the Accounting and Auditing Organisation for Islamic Financial Institutions, and to explore market instruments including sukuk.
