The State Duma, the lower chamber of the Russian parliament, has recently approved in the ‘first reading’ three draft laws that address the use of cryptocurrencies, mining, token offerings, and crowdfunding. Existing Russian laws do not directly regulate these matters, and the use of cryptocurrency in Russia is currently subject to legal uncertainty. This LawFlash summarises key provisions of the draft laws as well as information on likely future legislative action.
There have been no legislative changes affecting Islamic finance in Russia over the last six months, with providers of Islamic financial products operating within the country’s existing regulations. However the main financial regulator, the Central Bank of Russia, has made recent enquires with financial institutions in the country currently offering Islamic finance products regarding their facilitation and implementation under the existing legislation.
Muslims comprise around 15% of the Russian population and the country has vast potential for Shariah compliant finance across its multiple and varied territories. Vladislav Zabrodin and Anna Leksashova discuss the increasing level of Islamic activity occurring across its retail, capital and corporate finance markets.
Pharos Financial Group is one of the most experienced fund managers specialising in the securities markets of Russia and the former Soviet Union. With a 10-year history through up and down markets, Pharos has a proven record of superior absolute returns. Pharos' strength lies in its management unparalleled experience in the growth and development of Russian capital markets and the resulting insight into market events, opportunities and trends. Pharos principals have in-depth, personal knowledge of Russian companies, their history and management. Its management also has extensive Western capital markets experience and the technical expertise to handle complex opportunities involving derivatives and structured product.