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The financial institute had set up a working team, which deals with all the issues related to theapplication of the ethical financial instruments in the Russian Federation.

The mechanism of the Islamic financial system was the key topic of a joint meeting of the Russian and Bahraini business councils, which took place on October 21, 2015 in Sochi.

The event was dated for the 25th anniversary of diplomatic relationsbetween the governments.More than 30 top-managers, bank and companies’ representatives, including high-tech Russian and Bahraini industries, had attended the event.

-The Russian Federation considers Bahrain as an important partner in the Middle East and as an influential member of the Gulf Cooperation Council (GCC), - said the Head of Vnesheconombank Vladimir Dmitriev in his welcoming speech. The connections of businessmen has deepened and delegation exchange has also become more frequent. It had allowed to business communities of two countries to identify real requirements and resources of each other.

It was noted in the meeting that VEB is currently exploring channels to collaborate with Bahraini financial institutes and funds in the area of project and debt finance; and is consulting with Bahraini banks to employ Islamic finance principles in the bank.

Vnesheconombank has first expressed its interest in ethical financial instrument on December 2014, when Vladimir Dmitriev has visited the Kingdom of Bahrain with the Russian delegation. The Head of VEB told that in order to enter the Shariyah compliant financial market, the bank will first study the principles of Islamic financing in the GCC countries. At the time, he also shared the plans of sending a team of Vnesheconombank specialists to the region to research on ethical financial instruments.

For reference

There are 30 organizations and companies in the Russia-Bahrain Business Council from the following areas: IT, innovations, energy sector, shipbuilding, construction, logistics, food and medical industry, agriculture,small and medium sized enterprises (SMEs), petrochemistry, and finance. The Russian companies had presented their commercial offers during the meeting.

VEB leads the Russia-Bahrain Business Council (RBBC) since 2007. During its existence the structure has qualitatively changed, some largest companies and financial institutions entered the council. VEB’s main objectives are to support Russian industrial export, to aid the Russian companies in a joint project implementation as well as to attract investments to the Russian economy. The Russian and Bahraini financial development institutes signed the first agreement on December 2008, the purpose of which was to boost the turnover between the two countries with the involvement of SMEs.