The intention was conveyed to Indonesian Ambassador to Russia, Djauhari Oratmangun, during a visit to the Tatarstan capital city of Kazan on Thursday, the Indonesian Embassy in Moscow said in a media statement sent on Saturday.

Minnikhanov emphasized Tatarstan’s intention to increase tourism cooperation with Indonesia.

Djauhari also met with several ministers, Tatarstan chambers of commerce and industry, as well as delivering a general lecture at the Kazan University.

Officials from both countries agreed that Tatarstan and Indonesia had complementary potential and each country could become an entrance for goods from the other country. Tatarstan could become the entrance for Indonesian products to the central and eastern part of Russia while Indonesia could become the entrance for Tatarstani products in the ASEAN region.

Tatarstan is also the entry point for halal products from other countries, having a Muslim majority and the largest Halal industry in Russia.

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Even as Iran’s nuclear program raises the likelihood of yet another conflict in the Middle East, the bigger threat is a potential food crisis in the making, says Lester Brown, founder of the Earth Policy Institute. “When I ask myself, what are the threats for out security today, foreign aggression doesn’t make top five,” Brown told attendees of the Affordable World Security Conference in Washington, D.C., on Wednesday.

Grain yields are beginning to hit a “glass ceiling” in many countries, Brown said, where farmers have already taken advantage of what science has to offer for improving yield. As more and more countries hit an upper limit on productivity, the world grain harvest will begin to plateau, even as demand for food continues to rise, causing a rise in prices. More worrisome, the global food market is vulnerable to external shocks such as prolonged drought. “We don’t have idle land, we’re flat out,” says Brown. “We don’t have [food] stocks. We’re living harvest to harvest. The question becomes, what if we have a major shortfall in the world?”

An extreme weather event could tip the scales, he says. For instance, the heat wave and drought in Russia in 2010 reduced the country’s grain harvest by 40 percent, which tightened world supplies. If such a heat wave in the American Midwest were to have a similar impact on the much larger U.S. harvest, “we would have chaos on world grain markets,” says Brown. “That would affect financial markets, and financial stability in the world, which rests on confidence.”

Water shortages are also increasing pressure on agriculture. Half the world’s people live in countries that rely in part on over-pumping aquifers to expand production. That’s true of the U.S. China and India, says Brown. Once these aquifers are depleted and rate of pumping is reduced to rate at which they are replenished by rain, the drop in food production will be dramatic. That scenario is already playing out in Saudi Arabia. Biofuels adds another stress on food markets.

The good news is that in the U.S. is making some small headway on the path to sustainability. Carbon emissions, which peaked in 2007 due to the economic recession, have continued to decline since then. Brown attributes the trend to a closing of more than 100 coal plants in recent years. Car use is also down—young people apparently drive less than their parents, and baby boomers are beginning to retire, which means they drive less. New cars are also more efficient—between 2010 and 2025, average gas mileage for cars will double, says Brown.

Image credit: Public Domain Photos

About the Author: Fred Guterl is the executive editor of Scientific American. Follow on Twitter @fredguterl.

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Ms. Madina Emirovna, how could you characterize modern trends of halal industry development in Russia?

Nowadays Russia is not lacking behind other countries in the sphere of the development of halal infrastructure system. The internationally recognized standard for halal production, the International Centre for “Halal” standardization and certification of Russia Muftis Council, accredited regional committees, system of voluntary certification – are all in place.

In the near future we expect increasing developments of different business platforms for the halal producers of different sectors, and cooperation between them, one of such platforms is the annual exhibition Moscow Halal Expo. Muslim businessmen and halal producers from different regions of our country gradually get to know each other; they have market perception and understanding how the halal certification system works.

One of the major beginnings is the development of halal store chains in different regions of Russia. Once the system is in place, it will become a great contribution to the growth of the halal industry in our country. Presently the main task for businessmen and business communities is to draw up logistics system in different regions and to bring certified halal to the consumer from any far region of our vast country. It is enough to mention that we constantly receive requests from Muslim communities from the North and Siberia regarding lack of halal.

Islamic finance system is therefore if immense importance as every halal producer needs a financial partner and the interest based banks are prohibited in Islam. In this regard we constantly interact and coordinate the initiators and leaders of the Islamic finance projects in Russia by arranging trainings, expert discussions and involving them in our activities.

The Internet space is gaining higher importance. Halal is a topical issue actively discussed in different online social networks and websites, there are several serious portals devoted to the halal industry of various sectors. Among them are the website of the International Centre for Halal Certification and Standardization (www.halalcenter.org) and the website of Islamic economic, business and finance (www.muslimeco.ru). Moreover, our Department is working out together with the initiative group an online halal guide over Russia and CIS, which will be bilingual, with the ability to assess various places of trade and production, restaurants, cafes and other halal infrastructure areas, including Islamic financial companies (www.muslimguide.ru) .

Moscow Halal Expo is one of the basic initiatives in the development of the halal industry. What can you tell us about the process of preparation for the exhibition?

Russia Muftis Council’s project Moscow Halal Expo which we have been nurtured for a long time and have performed for 2 years, is topical, and fits with the demands of modern community. And now, businesses, people and international community perceive this project as something really necessary. Already 9 months prior to the exhibition possible participation of foreign and Russian companies was negotiated. We hope that this project will develop with the help of Allah and will be constantly filled with new initiatives and ideas, contests, events, etc.

Regarding the preparation process, first of all, we analyzed the results of Moscow Halal Expo 2011, taking into consideration the expectations and wishes of the exhibitors and participants. Bigger number of the exhibitors, improvement of the organizational process and exhibition status, positive remarks from the audience spoke for the success of the event. More number of esteemed guests from different countries visited our exhibition and we expect that the event of the year 2012 will be even greater insha Allah. We as organizers try to improve in all directions. Moscow Halal Expo for us is a special event which combines the results not only of the development of Islamic Business in Russia but the outcomes of the year-long work of Russia Muftis Council in the economic sphere.

Last year we opened the official bilingual website of Moscow Halal Expo (www.halalexpo.org), that is actively promoted and has as increasing number of visitors.

Video reports of each day of Moscow Halal Expo 2011 were positively accepted by the public, especially by those who hadn’t the opportunity to visit it. The Exhibition lasted 3 days. Accommodating the wishes of many visitors, we have decided to extend the time of the Moscow Halal Expo 2012 to four days.

Presently we are actively negotiating with various regions of Russia, from the Far East to Western part. Special attention is paid to the regions with Muslim majority: Tatarstan, Bashkortostan, Chechnya, Daghestan, Ingushetia etc. This year we have wider information campaign abroad under the international activities of the Russia Muftis Council. Representatives of the organizing committee have visited Indonesia, Brunei, Turkey, Egypt, Algeria, Morocco, United Arab Emirates, Tunisia, Uzbekistan and Belarus during the past three months. We see a great interest and motivated responses from the halal producers, Islamic financial companies and media resources from different countries. We are also strengthening cooperating with the Muslim communities in the European countries.

We also try to diversify this event various additional arrangements, hold competitions and tastings, masterclass and business forums, so everyone can find an answer to his question in any field of Islamic businesses and Islamic culture.

You are actively cooperating not only with domestic but also foreign companies. Which of them are represented at the Expo at a larger scale? And for what reasons?

In many countries halal expos are mainly aimed at international market. Russia is the largest country in the world and is sufficiently capacious and rich market in halal goods and services.

But Russia is at the same time an interesting market for export of the halal products of many foreign manufactures, especially from countries with strong Islamic tradition. South-East Asia in this regard made a great step. We are expecting a larger number of the halal producers from Malaysia, Indonesia, Iran, Turkey and Meghreb countries. Not long ago we were at friendly dinner by the invitation of Mr. Hamid Awaluddin, the Ambassador of Indonesia in Moscow, whose ambassador mission was coming to an end. At dinner we tasted interesting Indonesian products and were told about the cooking process. For example, “krupuk”, halal chips made from shrimps meat. They have no Russian analogues, but are quite popular goods in Indonesia and have positive prospects for promoting in Russia. Batik is another interesting item for presentation and export to Russia from this region. Also there is a variety of products and services from different countries that could be of interest in Russia. The Islamic Financial companies and investors could find quite a number of interesting halal oriented projects to study and invest in.

What prospects does Moscow Halal Expo provide for the foreign producers?

First, it’s the best place for promotion of halal products in Russia. Moscow Halal Expo is a meeting place for all Russian consumers, distributors, wholesalers and retailers who are interested in halal and halal has become a brand. Many buyers come to our Exhibition in order to sign treaties. After the first two Exhibitions number of supply contracts of halal products to the Russian wholesalers and retailers significantly increased, these are X5 Retail Group, Auchan, Metro etc. Among them is also a chain of stores «Azbuka vkusa», which is positioned in a high price segment.

Generally the results of participation for the foreign companies depend heavily on the goals the have. We are always open for negotiations. If there any large proposals and projects are available, we are ready to review these suggestions while preparing this year’s Exhibition as long as the time permits.

For the Islamic Business and halal certification Forum we invite foreign experts to make presentations and exchange views on developments in Halal certification sphere, to talk about new solutions in the field of Islamic finance, to share experience in the field of standardization and governmental control. We strive to cooperate with the state agencies, who comprehend the need and importance of Islamic finance in Russia.

In spite of the fact that Moscow Halal Expo itself is new and unique what could you mark out in term of public interest?

We have managed to add weight and importance to the halal in Russia. By organizing Exhibitions, preparations, negotiations, summarizing, various publications related to it, we have significantly increased the level of recognition in the society of the fact that Halal is the brand, mark of quality.

People gain more interest, come to the Exhibition, learn what it is, and tend to prefer halal, or at least have a positive understanding of it and that it is not something purely religious, but it is of high quality and useful.

Halal label appeared in many stores and retail chains. Halal is not just recognized brand, it is bought and sold; it confirms that there is business interests in halal.

Thanks to Moscow Halal Expo we have taught people, especially Muslims, to communicate and interact.

We can mention some positive responses of the participants, who noted that at the exhibition Moscow Halal Expo they see a friendly atmosphere, the desire in a quick and peaceful way resolve any arisen issues. Any preparation to the Exhibition, construction, registration etc. intimate an emergence of complex situations, which sometimes may lead to a conflict. But thanks to the coordinated work of the team such kind of issues were quickly and positively resolved, Alhamdulillah. This is one of the advantages that the exhibitors noted. These are not just companies that produce something halal, these are our brothers and sisters. It is important to demonstrate the principles of Islam in everything, including any projects that we organize.

Thank you for the interview and wish you success in the proper and timely cause.

Interviewed by Atikat Kurbanova

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KUALA LUMPUR (Oct 2, 2011): LSG Skychef-Brahim’s Sdn Bhd, formerly known as MAS Catering Sdn Bhd and the world’s biggest halal flight kitchen caterer, is embarking on expanding its services to new markets such as China, Eastern Europe as well as scouting for opportunities in the former Soviet states and the Middle East.
Datuk Ibrahim Ahmad Badawi, Executive Chairman of Brahim’s Holding Bhd — the parent company of LSG Skychef–Brahim’s Sdn Bhd, said there were numerous enquiries for the company to supply halal food not only for the Muslim market, but for non-Muslims as well globally given the wide range of cuisine offered under its menu.
A potential market was the republic of Tatarstan in Russia which is the gateway to the whole of the former Soviet Union states for halal food, he told Bernama in an interview today.
Similarly, he said, the company was also in Ningxia, China’s second Muslim autonomous province, through a joint venture company — Ningxia-Fahim International Halal Industries Corporation.
Ibrahim, who is also the Chief Executive Officer and founder of Dewina Holdings (the manufacturer of famous household brand, Brahims) said that another subsidiary company was operating military cook houses in Malaysia under a government privatisation exercise in 1998.
“We have invested more than RM65 million to revamp the catering operations in 63 military camps.”
The company has already formed a 50:50 joint venture company with King Abdullah Design and Development Bureau from Jordan, which is expected to be launched in the first quarter of next year, a move which offers lucrative expansion opportunities.
“The joint venture is worth about RM50 million including factory construction and machinery excluding land,” he said, citing how the Jordanian monarch was taken up by the company’s ability to provide halal food in such an efficient manner.
The oldest subsidiary of the group, Dewina Food, had also supplied halal food to the United Nations, in view that its multinational peace keeping forces comprised army personnel from many Islamic countries including Malaysia.
LSG Skychef-Brahim’s Sdn Bhd was established in 2003 through a joint venture between Brahim’s International Franchises and LSG Sky Chefs, following which the JV acquired 70% of loss-making MAS Catering Sdn Bhd’s share.
The other 30% is held by MAS.
“The government (at that time) under Tun Dr Mahathir Mohamad had proposed that Malaysia Airlines privatise its catering business, considering that the airlines incurred huge losses to the tune of about RM200 million through MAS Catering with negative shareholders’ funds of about RM80 million.
“So, I ventured with LSG, which is Lufthansa’s catering arm, the biggest flight kitchen operator in the world and formed a joint venture company. After we came in around November 2003, we started to make changes to the business,” Ibrahim said.
He said that negotiations for the acquisition lasted for more than a year before they sealed the deal worth about RM250 million, which was much higher than the RM50 million estimated by analysts at that time.
“MAS, at that time, wanted to get as much as money they could get to cover the losses. So, we were awarded a 25-year contract for catering for MAS to justify the amount of money they wanted,” he said, dismissing internet reports that the company made a windfall from the deal when in fact, it had to pay quite a premium for the acquisition for a loss-making company.
He said that the company would only be able to cover its accumulated losses next year.
He said that some of the internet reports painted a negative perception about the company as information about it having to acquire a company which had RM200 million in accumulated losses were not shared with the public.
Ibrahim clarified that despite the acquisition of MAS catering, the buildings and all the facilities belonged to Malaysia Airports Holdings Bhd (MAHB) and that LSG Skychef-Brahim’s Sdn Bhd was only given the rights to operate the business.
Since the takeover, LSG Skychefs – Brahim Sdn Bhd had brought about tremendous improvements which increased business’ efficiency, productivity and profits by controlling costs and purchasing in order to cover the losses, Ibrahim said.
“When we took over, we have 1,800 workers, producing about 26,000 meals per day and now, we have 1,200 workers, but we managed to doubled our capacity to an average of 40,000 meals per day,” he said.
Besides MAS, the company also catered for 35 other airlines, representing about 90% of the airlines which land in Kuala Lumpur. Their Penang operations cater to 10 airlines.
The Mahathir administration at that time felt that MAS should stick to its core business of running an airline and therefore should hive off the loss-making catering unit to someone who knew how to run the business.
“That’s how we got it. That was a correct move and the exercise (acquisition) was more like a rescue operation.” he said.
Ibrahim said that it was also wrong to imply that losses incurred by MAS now were due to its catering services as catering only accounted for 1.7 percent of its operating costs, but the way the reports painted it was as if catering was the main contributor to its losses. — Bernama

http://www.thesundaily.my/news/162624

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By Nick Watson: Russia Beyond the Headlines

Although there has been much speculation about Muslim investors moving into Russia, the situation has been one of all talk and no action — until now.

Two Islamic funds have recently launched operations in the ?Muslim-majority Republic of? Tatarstan. The first is the ?Malaysian private equity firm Amanah Raya Capital Group, which has launched several? projects the republic. In the 1990s, most foreign investors headed straight for Moscow. The game changed after 2000, however, and Russia’s regions have become the new frontier; Kazan caters to the 80 million Russians that live in the cities lining the Volga River.

“We bypassed Moscow and came to Kazan, as it offers the most attractive investment ?climate,” said Dato Ahmad Rodzi Pawanteh, Amanah Raya’s managing director.

The fund’s first project was the Kazan Halal hub, which imports Halal meat and other products for the region’s Muslim majority. Once established, the fund financed the construction of a Halal meat processing plant in Baltash, 62 miles from Kazan, where local producers can also bring their meat to be processed according to Islamic rules. The latest phase of the project set up an Islamic fund management company that will invest in Halal-related ?projects. The management company will also hold a pilgrimage fund to finance a Hajj for local residents.

“We have been very successful with this sort of fund in Malysia, and it was an obvious product to bring to Tatarstan,” said Pawanteh. “But we are also working with the local government to raise funds on a private equity basis to bring in foreign investment to the region.”

According to Pawanteh, the local government has been very active in promoting foreign investment in the region, and has taken a stake in these funds as a way of reassuring foreign investors that it is willing to share the risks with investors.

The second fund that recently established itself in Tatarstan is the Foras International Investment Company, which represents Saudi money and has launched a classic investment vehicle together with the newly established Tatarstan International Investment Company, or TIIC. The $50 million fund will focus on the ?region’s strengths in bio-technology, nanotechnology and I.T. The company was inaugurated in June ; the founding investors have already contributed $10 million and are in the process of raising the balance.

“We are focused on the Volga region and the attractive investment climate the government has created here with tax breaks and incubators,” said Amizan bin Mohd Nor of Foras. “One of the most attractive elements in this region is the high level of science and engineering, especially in things like civil aviation.”

Kazan was known in the Soviet era as a center of learning, and its universities still churn out many of Russia’s best engineers. It is also home to a flourishing aviation industry as well as a burgeoning automotive sector.

“We have 20 projects in the pipeline, and 80 percent of them are brownfield that we will develop over the next three years,” said Nor. “But probably the most prospective are in the technical aviation sector.” Nor said he can’t reveal the details of the projects yet as they are still in negotiations, but that he is particularly excited by a project to make aviation rescue vehicles.

“The companies here are advanced, and the level of technology is as good as anything I have seen in Europe,” said Nor. “And the trouble with Europe is it is a highly saturated market. In Russia, we can easily find companies where we can really increase the value, with willing buyers in the Middle East and beyond.”

lori-mechet:Legion Media - Mosque in Kazan, Tatarstan

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Halal meat is meat that has been slaughtered according to Islamic law, in which the animal is killed by a transverse cut to the throat, rather than by the usual European method of rendering the animal unconscious by stunning and then killing it by bleeding.

With the Muslim Holy month of Ramadan underway, the French food industry is paying special attention to the growing market of products known as “halal,” a designation for food produced according to the rules of Islamic law.
Halal retailers earn about one third of their annual revenue during the month of Ramadan. Overall, the quickly expanding industry pulls in an estimated 5 billion Euros worldwide, according to Solis, an ethnic studies consultancy firm. In France, supermarkets sold roughly 130 million worth of halal products last year. That number is expected to reach 140 million Euros in 2011, according to the consultancy firm Nielsen.

Halal products only began appearing in French supermarkets a few years ago. Specialized brands like Isla Délice and Reghalal were later joined by large French food industry players like Fleury Michon and Panzani. The supermarket chain Casino launched its own range of halal products under the umbrella brand Wassila. And Carrefour, France’s top food retailer sells approximately 50 of its own halal products as well. Carrefour’s halal foods have been approved by the Grande Mosquée de Paris (the Great Mosque of Paris). But for many consumers, questions remain about halal certification.

Concerns were heightened recently by a documentary aired by the television network Canal +, which described “some practices that could be described as fraudulent. With Ramadan now into its second week there has been much debate this month in France about the growth of halal food consumption. According to Iremam (the French Institute of Research on Arab and Muslim civilizations) there are over 5 million Muslims in France and the halal market is four times more valuable than the market for organic food.

Halal products in Russia

Halal products volume in Russia is also growing 30-40 percent annually, the Halal Standard Committee at the Tatarstan Islamic High Council said based on research outcomes. Head of the Russian Consumer Rights Protection Union Mikhail Anshakov believes most Halal products are consumed by Moscow residents who have no relation to Islam, Fakty weekly reports recently.

“The demand for food products manufactured under control of any religious community is on the rise because consumers become more careful in selecting their food. Halal products are well-known as high quality food. For instance, they use minimum chemical additives or by-products and, thus, consumers have more trust in them,” he believes

According to the newspaper report, the current food trends in Europe also show that Europeans increasingly trade off traditional food for Halal products.

Halal products in USA

Faisal Masood, founder of the American Muslim Consumer Conference, relates American Muslims hold 170 billion dollars in spending power. It is an amount that is expected to grow exponentially as indigenous Muslims grow and immigrant Muslims raise their second and third generations in America.

As numbers grow, Muslims continue to maintain purchasing habits that align with their Islamic faith. Muslims want to be able to look at a product and see a recognizable halal logo. There is an increasing demand for products that are inclusive.

The Pure Halal Center based in Philadelphia, – a halal certification company, is answering those needs by specializing in training, product development and community outreach. The Pure Halal Center (PHC) examines the needs of the American Muslim consumer and then works with manufacturers, universities, hospitals and other institutions to offer halal products. PHC recognizes that the supply for halal is not meeting the demand.
For Muslims living in Philadelphia, shopping halal is indeed getting easier. The Brown Family chain of Shoprite supermarkets currently offers a number of halal products and is working aggressively to increase shelf space for more certified halal products.

Customers can find brands such as NAC Foods’ Mimi brand spices, Club America’s Halal gummy bears and Tayy-ib brand lunch meat. Retailers are also offering IFANCA certified Halal brands such Crescent Foods, Saffron Road, and Toms’ of Maine products in many cities.

New Trends

Historically, halal certified products have been hard to come by in the US from mainstream brands, but times are changing. The Pure Halal Center is in talks to certify products from Herr’s – the third largest snack food brand in America.

There is crossover appeal for halal products. Many non-Muslim consumers already choose to buy halal products, especially meat offerings. One reason is because halal is widely known to be held to higher standards of quality. This is particularly important at a time when more Americans are looking to adopt healthier eating habits.
Muslim Americans want to purchase the same products as every other American – they just want them to be unquestionably halal. The number of American Muslims is slated to reach 16 million by 2014 and American Muslim consumers are looking ahead. They are no longer satisfied with purchasing products after having no choice but to read a lengthy list of ingredients and spending way too much time in the supermarket.

Mainstream manufacturers and retailers have been slow to take notice. Studies show that while the opportunity for market share among other segments is dwindling, the American Muslim market remains virtually untapped.

The Mail newspaper recently revealed how most British supermarkets were secretly selling halal meat – especially lamb. The investigation found that most New Zealand lamb sold in major British supermarkets was halal, meaning that the prayer ‘In the name of Allah, who is the greatest’ is said at the time of slaughter. Stores selling lamb slaughtered according to Islamic law included Waitrose, Marks & Spencer, Asda, Morrison, Tesco and Sainsbury’s.

Counter trends

Last month, The Dutch Animal Rights Party pushed a bill through the lower house of the Dutch Parliament that would outlaw the slaughter of animals without stunning. The law, if ratified by the upper house of parliament, will in essence make locally raised and slaughtered kosher (and halal) meat illegal. A similar law was passed in New Zealand last year, and kosher slaughter is already outlawed in Iceland, Norway and Sweden.

The battle over the ethicality of kosher slaughter came to the United States recently, though fortunately with a better outcome. A Washington state appellate unanimously rejected a suit that would have made a law protecting religious slaughter unconstitutional, says the JTA.

Jewish groups in Europe are strategizing ways to combat the Dutch bill. In June, United Kingdom Chief Rabbi Jonathan Sacks told British paper The Telegraph: “We are worried that [this type of bill] could spread. There has been a non-stop campaign by animal welfare activists to have all forms of ritual slaughter banned. It has to be fought everywhere because if it’s lost anywhere it has a potential domino effect.

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Head of the Russian Consumer Rights Protection Union Mikhail Anshakov believes most Halal products are consumed by Moscow residents who have no relation to Islam, Argumenty i Fakty weekly reports Thursday.

“The demand for food products manufactured under control of any religious community is on the rise because consumers become more careful in selecting their food. Halal products are well-known as high quality food. For instance, they use minimum chemical additives or by-products and, thus, consumers have more trust in them,” he believes.

According to the newspaper report, the current food trends in Europe also show that Europeans increasingly trade off traditional food for Halal products.

The global halal food market is currently estimated at US$500 billion per year.

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KAZAN – The stricter, more ethical rules of Islamic finance helped many countries avoid the worst of the 2008 economic meltdown. Now officials in the Russian republic of Tatarstan are hoping that Islamic finance can help them attract direct investment from Muslim nations around the world.

Last week a summit on Islamic finance in Kazan, the capital of Tatarstan, welcomed delegates from as far afield as Malaysia, Saudi Arabia, Turkey, Azerbaijan and the United Arab Emirates.

Avoiding U.S. debt

Since the crisis, Muslim countries have accumulated “substantial liquidity” which needs to find investment opportunities in new markets, said Anatoly Aksakov, a State Duma deputy who also heads the Russian Association of Regional Banks.

“We are talking about tens of billions of dollars – assets that Islamic investors are seeking to diversify to escape dependence on U.S. dollar denominated instruments, which have become risky due to the high level of U.S. debt,” Aksakov told The Moscow News on the sidelines of the conference.

Local hero

Linar Yakupov, CEO of the Tatarstan Investment Development Agency, told The Moscow News that he was hired by the republic’s government to attract Islamic capital. In 2001, Yakupov returned to his hometown, Kazan, from Kuala Lumpur, where he studied Islamic finance at the International Islamic University of Malaysia.

“I was probably the very first certified specialist in Russia on the issue,” Yakupov said. His starting project in Tatarstan was a halal farm, set up to produce food in conformity with Islamic customs.

“We were pioneers in this. When the Tatarstan government took a decision to turn the republic into a gateway for Islamic financial resources into Russia,” he said. Yakupov’s halal farm attracted investment from Saudi Arabia and Malaysia, he said.

Dynamic local economy

Tatarstan has one of the more dynamic economies of the Volga Federal District. According to a KPMG survey, the republic’s GDP has been growing at a rate of 6.5 per cent annually, and has accumulated $7.4 billion of direct foreign investment. The Expert RA rating agency ranks Tatarstan 11th of Russia’s 83 regions.

Unlike many other regions of the country, Tatarstan has managed to maintain many of its Soviet-era industries – such as large farms, machinery and aviation factories – over the last 20 years.

The republic also has large oil reserves. Since the 1940s, Tatarstan has produced more than 3 billion tons of oil, according to official figures, and has retained control of the oil firm Tatneft, plus two key refineries, Kazanorgsintez and Nizhnekamsneftehim.

Tatarstan’s links with the Islamic world could now help it weather global economic headwinds, says Rustam Minnikhanov, the republic’s president.

“We are proud that we have historical and spiritual interaction with the Islamic world,” Minnikhanov told last week’s conference.

Some adjustments required

Aksakov said that Islamic finance would be a good fit with most Russian legislation. “Perhaps we will need to adjust the law in some specific cases,” Aksakov said.

For example, the Riba principle prohibits acceptance of interest for loans of money, and this could cause a conf lict with Russian laws.

“If you take a car loan, you don’t pay interest on money, you just repay your car to the bank in installments,” Aksakov said. But if you pay for goods by installments, you’d have to pay the VAT, which you aren’t supposed to pay in a traditional loan repayment situation.

This was one of the issues that delayed a $200 million Islamic bond, or “sukuk,” project.

But given that the world hasn’t fully recovered from the financial crisis, Islamic finance has quite an appeal here – especially if you consider the dangers of irresponsible, Western-style lending.

“Look what can happen if you ignore the Sharia principles in banking,” a Saudi Arabian delegate, Abdurrahman Atran, who heads the World Assembly of Islamic Youth, told the conference.

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As the country’s capital played host to leading Halal industry players at the Crocus Expo in Moscow from 26 – 28 May 2011, feedback from over 500 participants was that this year’s Moscow Halal Expo was a huge success in showcasing the diversity of local Halal products and services, as well as highlighting the potentials of 27 million-plus Muslims in Russia.

Organised by the Russia Muftis Council, the event’s significance were rightly expressed by the Mufti Sheikh Ravil Gaynutdin, Chairman of the Russia Muftis Council in his opening remarks.

“We are gathered here to be reminded that Islam is not merely a set of certain rituals but a complete spiritual, moral and legal system that can bring us to the benefits both in this transient life and in the eternity, if we follow it.”

More proof of the organiser’s comprehension of the global industry was prevalent from the line up of both the exhibitors and speakers. A total of 80 companies took part in the expo, from meat and livestock and processed food producers to fashion and media operators.

The predominantly Russian-based exhibitors also provided a clear indication of the growing demand for Halal in Russia. Rushan-Hazrat Abbayasov, Deputy Mufti and Chairman of the Organising Committee commented, “It is gratifying to note that the number of companies representing Russian Islamic business is growing from year to year, thus increasing the diversity in the range of Halal products and services offered to the public.”

Read more at http://halalmedia.my/russian-muslims-keen-penetrating-lucrative-halal-market-vice-versa

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During the meeting, the President of Tatarstan noted that the Republic of Tatarstan is actively engaged in cooperation with the Arab countries and believes that the visit of the business delegation will give a major boost to our future bilateral relations.

Then the foreign delegation visited Small and Medium-size Enterprises Development Committee of the Republic of Tatarstan.

During the meeting with Linar Yakupov, the Chairman of Small and Medium-size Enterprises Development Committee of the Republic of Tatarstan Russian side presented a number of investment agriculture, construction and Halal industry development projects.

The latest project on the establishment a Technology Investment Fund in our Republic caused the greatest interest. Sheikh Saleh Kamel announced that he will invest $2m in the authorized capital stock. The initial capital of the Technology Investment Fund will be $10m, then the amount will be increased to $100m. Officially, the establishment of the Fund is expected to be announced at Kazasummit 2011.

During the meeting they discussed the prospects of the Republic to become a major center of Islamic Finance in Russia. Earlier, Sheikh Saleh Abdullah Kamel proposed that the Republic government consider the possibility of opening a bank in Tatarstan, which would work within the Islamic tradition. The global financial crisis has shown everyone that such banks are less exposed to the risks, he said.

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