Trading under Sharia: the St. Petersburg Exchange launches partner-financing trades

157 tonnes of diesel sold under Islamic principles on the exchange

The St. Petersburg Exchange today opened its first partner-financing trades. As part of the pilot, a transaction using the product known as “commodity murabaha” was tested — a sequential purchase and sale of a commodity on an organised over-the-counter market. The seller was Kazan-based As-Salam, owned by Renat Edikhanov, and the buyer was the Chechen company Alfa.

Using an exchange mechanism developed for the first time in accordance with AAOIFI Sharia standards, diesel fuel worth 10 million roubles was sold on “franco-reservoir OTP” delivery terms. A fixed markup was added to the base price. Given that the transaction was a test case, the volume of purchase and sale was small — about 157 tonnes (based on the current exchange rate for diesel fuel). A fatwa confirming the compliance of the transactions and the organisation of exchange trading with AAOIFI Sharia standards was issued for the pilot transactions. Approval was granted by Sharia experts from As-Salam and the Sheikh Zayed Foundation.

“There are those who firmly insist on having this opportunity”

The exchange trading was opened by the president of the St. Petersburg Exchange, Igor Artemyev; later, Alexey Yakovlev, director of the Financial Policy Department of the Russian Ministry of Finance, arrived for the ceremony.

“Before the adoption of the federal law on partner financing, transactions were carried out within the framework of ordinary business practice,” Igor Artemyev noted. “We seek to show deep respect to our republics with predominantly Muslim populations, which is why we view this as a significant gesture of attention.”

On the other hand, the exchange may become a channel for product exports. What is its potential? “Let me put it this way — many Islamic countries trade under ordinary business rules, but there are those who firmly insist on having this opportunity,” he noted.

Nevertheless, the global market for Islamic finance is growing and currently stands at $5 trillion, the exchange president noted. By 2030, it is expected to rise to $9 trillion. According to Artemyev, the volume of partner-financing operations in Russia amounted to 8.6 billion roubles (as of June 2025), and the potential of the Islamic finance market in Russia is estimated at $11 billion.

The murabaha transaction was carried out in three stages

The trades to conclude the murabaha transaction took place in three stages. Murabaha is a sale contract at an agreed price that includes the seller’s markup. Its purpose is to finance a purchase without interest, which is prohibited under Islamic law. For this reason, the purchase and sale of fuel took place on the exchange separately in the petroleum products section, while the third (financial) stage was concluded off-exchange.

As Renat Edikhanov told Realnoe Vremya, As-Salam first purchased diesel in the exchange “order book”, and then sold it at market price in trading mode. “The Sheikh Zayed Foundation financed the purchase and sale by providing funds for As-Salam.” According to him, the buyer received the fuel on a four-year instalment plan. This technological scheme will likely be used in future transactions under this product.

“The Sheikh Zayed Foundation is our permanent partner; we have an agreement with them on cooperation and the development of partner finance. When we propose something new, they respond quickly and we get to work,” Renat Edikhanov noted.

At the same time, he assured that the exchange platform does not cancel transactions on other digital platforms. “We are working on developing the capital market. Essentially, the capital market brings together money, investors and borrowers. The connecting link is the infrastructure of platforms operating in various formats,” Edikhanov noted. According to him, a bond issue (sukuk) is currently being prepared in the interests of VEB.RF Group.

The exchange will open a segment for partner transactions

A segment for partner-financing transactions is being created within the exchange, the president of the St. Petersburg Exchange, Igor Artemyev, told journalists at the ceremony launching exchange trading under Islamic principles. A “partner clearing” mechanism — a settlement mechanism free from interest (riba) — will be implemented here. “Recent meetings with representatives of exchanges and industrial groups from Turkey, Pakistan and Iran have confirmed their readiness for new transactions with Russia. Offering an alternative in the form of Islamic finance, alongside traditional methods, ‘will allow many of our partners to feel respect for their spiritual values’.”

“We in the Finance Ministry cannot just take someone by the hand and bring them in. Our task was to create the infrastructure and, above all, the legal conditions for investors to come,” Alexey Yakovlev, director of the Financial Policy Department of the Russian Ministry of Finance, emphasised. “Representatives of many countries have arrived today. Among them are financial and industrial groups from Turkey, Pakistan and Iran. They are already prepared to buy and sell.”

Igor Artemyev added that companies from Islamic countries are already undergoing or have completed registration as brokers on the St. Petersburg Exchange.

“When the experiment (on Islamic banking — editor’s note) was launched, two main goals were set. First, to meet the needs of Muslims for halal products. Second, to work out mechanisms in the capital market (transactions involve instalment payments — editor’s note), so as to attract investment, including from BRICS countries. The organisation of exchange trading not only expands the partner base but also lays the foundation for future growth, when Islamic counterparties will be able to offer a wider range of goods for exchange-based transactions,” he concluded.