Q&A session: Partnership Financing in Russia: New Experience, First Assessments
Q&A session: Partnership Financing in Russia: New Experience, First Assessments
Organizer: Bank of Russia, Federation Council of the Federal Assembly of the Russian Federation.
Venue: Kazan Expo International Exhibition Center, Kazan
Time: May 17, 10:00-11:30 a.m.
The session “Partnership Financing in Russia: New Experience, First Assessments” was attended by:
Ivan Chebeskov, Deputy Minister of Finance;
Mukharbiy Ulbashev, Deputy Chairman of the Federation Council Committee on Budget and Financial Markets;
Saad Bakkali, Head of the Supreme Shariah Department at the Central Bank of the UAE;
Madina Tukulova, Head of the Islamic Finance at International Financial Center "Astana";
Rustam Minnikhanov, Rais (Head) of the Republic of Tatarstan;
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Market;
Rustam Sagdeev, Director of FD LLC Amal,
Ekaterina Lozgacheva, Director of the Department for Strategic Development at the Financial Market of the Bank of Russia,
Airat Farrakhov, Deputy of the State Duma,
Behnam Gurban-Zade, Managing Director and Head of the Center for Partnership Finance and Special Projects of Sberbank;
Galina Kuznetsova, Director of the Compliance Department, Vice President of Tinkoff Bank JSC;
Renat Yedikhanov, Head of the Partnership Finance Department, Business Russia LLC;
Marat Sharifullin, Manager Branch-National Bank for the Republic of Tatarstan of the Volga-Vyatka Main Directorate of the Central Bank of the Russian Federation;
Marina Myasnikova, Head of the Ural Main Directorate of the Bank of Russia;
Mohammad Hazzar, General Director of MB Bank JSC;
Midhat Shagiakhmetov, Deputy Prime Minister of the Republic of Tatarstan - Minister of Economy of the Republic of Tatarstan;
Maxim Topilin, Chairman of the State Duma Committee on Economic Policy, Deputy Chairman of the Federation Council Committee on International Affairs;
Farit Mukhametshin, Deputy Chairman of the Strategic Vision Group “Russia - Islamic World”;
Grigory Karasin, Chairman of the Federation Council Committee on International Affairs.
The session was moderated by Andrey Melnikov, Director General of the state corporation “Deposit Insurance Agency”.
An important factor in the development of the financial market is the availability of various financial instruments to meet the needs of citizens and businesses. The introduction of new instruments creates additional opportunities for the development of the country's financial system. Along with the development of the traditional capital market, the role of partnership financing may increase in the changed conditions.
“New digital tools can be used for Islamic banking, if something needs to be adjusted in the legislation, we are also ready to consider this. This direction is very promising, I am generally an apologist for digital financial assets, since they allow us to overcome sanctions decisions against our country,” Anatoly Aksakov said.
On September 1, 2023, an experiment on partnership financing was launched on the territory of four regions of the Russian Federation: the Republic of Bashkortostan, the Republic of Dagestan, the Republic of Tatarstan and the Chechen Republic. The experiment will last two years and will allow us to assess the demand for new financial products both among citizens and among businesses. The session discussed the first assessments of the experiment on partnership financing in Russia, as well as new experience gained during its implementation.
“In fact, we have been moving towards this for a long time and consistently. <…> Most importantly, there have been positive results since the beginning of the experiment. 1290 transactions. New products. <…> These are additional tools that do not pose any threat to anyone. If it works in England, why can't it work in Russia? <…> Organization of Islamic Cooperation – 57 countries. They do not treat Russia like Western countries. When they see that Muslims in Russia - and there are more than 15 million of them - have the same opportunities, this will only be beneficial for our country,” said Rustam Minnikhanov, Rais of the Republic of Tatarstan.
State Duma Deputy Ayrat Farrakhov explained that the purpose of the experiment was to create effective special governing, which forms the logic of the work. According to him, it is necessary to proactively work to improve regulatory framework and legislation, taking into account the interests of the non-traditional financial market and discussing them through the prism of partner financing.
“The main thing is a harmonious, understandable, transparent standard. This is what will allow us to develop in the market of other countries. When this experiment in Russia just began to develop, we immediately told our colleagues from Russia, “a single standard is something that can make your life easier in the future, can facilitate communication with your partners,” Saad Bakkali said.
Kazakhstan is showing active growth in the Islamic finance sector, supported by specialized legislation and a number of functioning financial institutions. “In Kazakhstan, we are actively developing Islamic finance, with the help of legislation and several operating Islamic financial institutions. A recent study showed significant demand for Islamic financial services among practicing Muslims. This underscores the need for pointwise definition of products that interest clients and develop both financing and investment instruments,” said Madina Tukulova.
Director of the Department for Strategic Development of Financial Market at the Bank of Russia, Ekaterina Lozgacheva, expressed hope that by autumn of 2024 the results of the experiment will be published. “We conducted a survey based on the results of 2023. <…> We had 17 organizations participate in this round. And, of course, the circle of participants will expand. If we talk about the portfolio of transactions that we were able to evaluate as part of this survey, then in general it is about 1.8 billion rubles both in terms of funds raised and funds placed. The most popular among transactions to raise funds is deposit - these transactions already exceed 1.2 billion rubles,” Ekaterina Lozgacheva said.
The 15th International Economic Forum "Russia - Islamic World: KazanForum 2024" is being held on May 14-19 in Kazan. This year's keynote is "Trust and Cooperation." The main goal of the forum is to strengthen trade and economic, scientific and technical, social and cultural ties between Russian regions and the countries of the Organization of Islamic Cooperation (OIC), as well as to promote the development of the Islamic financial system institutions in Russia.
Venue: Kazan Expo International Exhibition Center, Kazan
Time: May 17, 10:00-11:30 a.m.
The session “Partnership Financing in Russia: New Experience, First Assessments” was attended by:
Ivan Chebeskov, Deputy Minister of Finance;
Mukharbiy Ulbashev, Deputy Chairman of the Federation Council Committee on Budget and Financial Markets;
Saad Bakkali, Head of the Supreme Shariah Department at the Central Bank of the UAE;
Madina Tukulova, Head of the Islamic Finance at International Financial Center "Astana";
Rustam Minnikhanov, Rais (Head) of the Republic of Tatarstan;
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Market;
Rustam Sagdeev, Director of FD LLC Amal,
Ekaterina Lozgacheva, Director of the Department for Strategic Development at the Financial Market of the Bank of Russia,
Airat Farrakhov, Deputy of the State Duma,
Behnam Gurban-Zade, Managing Director and Head of the Center for Partnership Finance and Special Projects of Sberbank;
Galina Kuznetsova, Director of the Compliance Department, Vice President of Tinkoff Bank JSC;
Renat Yedikhanov, Head of the Partnership Finance Department, Business Russia LLC;
Marat Sharifullin, Manager Branch-National Bank for the Republic of Tatarstan of the Volga-Vyatka Main Directorate of the Central Bank of the Russian Federation;
Marina Myasnikova, Head of the Ural Main Directorate of the Bank of Russia;
Mohammad Hazzar, General Director of MB Bank JSC;
Midhat Shagiakhmetov, Deputy Prime Minister of the Republic of Tatarstan - Minister of Economy of the Republic of Tatarstan;
Maxim Topilin, Chairman of the State Duma Committee on Economic Policy, Deputy Chairman of the Federation Council Committee on International Affairs;
Farit Mukhametshin, Deputy Chairman of the Strategic Vision Group “Russia - Islamic World”;
Grigory Karasin, Chairman of the Federation Council Committee on International Affairs.
The session was moderated by Andrey Melnikov, Director General of the state corporation “Deposit Insurance Agency”.
An important factor in the development of the financial market is the availability of various financial instruments to meet the needs of citizens and businesses. The introduction of new instruments creates additional opportunities for the development of the country's financial system. Along with the development of the traditional capital market, the role of partnership financing may increase in the changed conditions.
“New digital tools can be used for Islamic banking, if something needs to be adjusted in the legislation, we are also ready to consider this. This direction is very promising, I am generally an apologist for digital financial assets, since they allow us to overcome sanctions decisions against our country,” Anatoly Aksakov said.
On September 1, 2023, an experiment on partnership financing was launched on the territory of four regions of the Russian Federation: the Republic of Bashkortostan, the Republic of Dagestan, the Republic of Tatarstan and the Chechen Republic. The experiment will last two years and will allow us to assess the demand for new financial products both among citizens and among businesses. The session discussed the first assessments of the experiment on partnership financing in Russia, as well as new experience gained during its implementation.
“In fact, we have been moving towards this for a long time and consistently. <…> Most importantly, there have been positive results since the beginning of the experiment. 1290 transactions. New products. <…> These are additional tools that do not pose any threat to anyone. If it works in England, why can't it work in Russia? <…> Organization of Islamic Cooperation – 57 countries. They do not treat Russia like Western countries. When they see that Muslims in Russia - and there are more than 15 million of them - have the same opportunities, this will only be beneficial for our country,” said Rustam Minnikhanov, Rais of the Republic of Tatarstan.
State Duma Deputy Ayrat Farrakhov explained that the purpose of the experiment was to create effective special governing, which forms the logic of the work. According to him, it is necessary to proactively work to improve regulatory framework and legislation, taking into account the interests of the non-traditional financial market and discussing them through the prism of partner financing.
“The main thing is a harmonious, understandable, transparent standard. This is what will allow us to develop in the market of other countries. When this experiment in Russia just began to develop, we immediately told our colleagues from Russia, “a single standard is something that can make your life easier in the future, can facilitate communication with your partners,” Saad Bakkali said.
Kazakhstan is showing active growth in the Islamic finance sector, supported by specialized legislation and a number of functioning financial institutions. “In Kazakhstan, we are actively developing Islamic finance, with the help of legislation and several operating Islamic financial institutions. A recent study showed significant demand for Islamic financial services among practicing Muslims. This underscores the need for pointwise definition of products that interest clients and develop both financing and investment instruments,” said Madina Tukulova.
Director of the Department for Strategic Development of Financial Market at the Bank of Russia, Ekaterina Lozgacheva, expressed hope that by autumn of 2024 the results of the experiment will be published. “We conducted a survey based on the results of 2023. <…> We had 17 organizations participate in this round. And, of course, the circle of participants will expand. If we talk about the portfolio of transactions that we were able to evaluate as part of this survey, then in general it is about 1.8 billion rubles both in terms of funds raised and funds placed. The most popular among transactions to raise funds is deposit - these transactions already exceed 1.2 billion rubles,” Ekaterina Lozgacheva said.
The 15th International Economic Forum "Russia - Islamic World: KazanForum 2024" is being held on May 14-19 in Kazan. This year's keynote is "Trust and Cooperation." The main goal of the forum is to strengthen trade and economic, scientific and technical, social and cultural ties between Russian regions and the countries of the Organization of Islamic Cooperation (OIC), as well as to promote the development of the Islamic financial system institutions in Russia.
