Moscow, (IINA) – Russia is working actively with Malaysia to facilitate and develop its halal industry and Islamic banking, says Regions-Russia Association President Linar Yakupov.

According to Malaysian Daily Express, Yakupov noted that the Malaysian companies, involved in the halal industry, could enter into joint ventures to set up production and distribution centres in the Russian market, which has a Muslim population of more than 20 million people.

“Russia is really pushing towards its agenda on import substitution. We grow a lot of agricultural raw materials, which need to be processed.”

“We know our shortcomings. I think we are gaining momentum as there are Malaysian companies which are matured enough to go into the Russian market,” he told reporters after attending the 4th AEM-Russia Consultations, chaired by International Trade and Industry Minister Datuk Seri Mustapa Mohammad.

The consultations were held on the sidelines of the four-day 47th Asean Economic Ministers’ Meeting (AEM) and related meetings, which ends Tuesday.

The Russian delegation to the AEM is headed by its Economic Development Minister Alexey Ulyukaev.

Touching on Islamic banking, Yakupov said a feasibility study was being undertaken by Malaysian experts to establish either Islamic banking or Islamic banking window in Russia.

The minister pointed out that Russia had reached a level where it could provide good industrial technologies to the Asean market.

In 2014, Russia was Malaysia’s 22nd largest trading partner, with total trade amounting to US$2.8 billion, up 55.2 per cent, from US$1.81 billion recorded in 2013.

Last year, Malaysia imported US$2.07 billion worth of goods from Russia, up 77 per cent, from US$1.17 billion imported in 2013.