VTB Group, Russia’s second largest bank, is bailing on the US dollar.
VTB is planning on conducting debt sales in China but, of greatest interest for our purposes, they are also looking at selling Islamic bonds, or sukuk, in Indonesia.
What makes this doubly significant is that the Russian government controls VTB.
“…in April last year that the bank wanted to become the first Russian borrower to sell Shariah-compliant debt, and was aiming to raise about $200 million in 2011 selling sukuk, debt that complies with Islam’s ban on interest.
The lender wants to establish “an infrastructure for issuing sukuk” as Russia also has a large Muslim population…”
The camel’s nose is getting under the tent inside Russia…Note that less than ten years ago the debt markets were doing just fine without Shariah-compliant bonds. Now Muslims are demanding that anyone interested in floating bonds make them Shariah-compliant. This is the march of Islam, just as Mawdudi envisioned it when he dreamt up Shariah Finance. It’s not just about Shariah-compliance; petro-rich Muslims had no hesitation to buy secure Western bonds for decades until very recently. This is Islamic economic imperialism pure and simple, designed to promote Shariah.