KUALA LUMPUR, Nov 8 (Bernama) -- Moscow-based Badr Forte Bank, the firstand only Russian Islamic bank, today announced that the first number oftransactions involving palm oil products export from Malaysia to Russiawere being finalised.In a statement Friday, the bank said the transactions will be insuredunder an export credit insurance facility provided by Malaysian ExportCredit & Insurance Berhad (MECIB).

The agreement for the facility was signed in June 2002 in Moscow by TanSri Wira Abdul Rahman Arshad, group chairman of Bank Industri andTeknologi Malaysia, of which MECIB is a wholly-owned subsidiary, and DrAdalet Djabiev, chairman and CEO of Badr Forte Bank in Moscow.

The agreement was signed as part of the proceedings during the openingceremony of a seminar jointly organised by the Jeddah-based IslamicDevelopment Bank (IDB), and the Istanbul-based Association of IslamicDevelopment Financial Institutions of Member Countries of the OIC(ADFIMI), and Badr Forte Bank.

Badr Forte Bank said there were a large number of Russian companiesinterested in importing Malaysian palm oil products and other traditionalproducts, and that they were currently finalising contract negotiationsinitiated by the bank.

These contracts will come under the same export credit insurance facility.

It said the initial facility amount is on a US$0.5 million on a revolvingbasis. As the facility gains momentum, the amounts could be increasedsubject to the negotiations and approvals of both MECIB and Badr ForteBank, which is the facilitator and promoter of Russian-Malaysian traderelations.

Badr Forte Bank specialises in trade finance, and its main objective is tofacilitate and support trade and economic co-operation between Russia andthe developing countries of Asia and Africa, with a focus on membercountries of the Organisation of Islamic Conference (OIC).

At the same time, the bank is also maintaining a correspondent bankingrelationship with Bank Islamic Malaysia Bhd (BIMB) and the Eximbank(Malaysia) Bhd.

The bank is also finalising negotiations with BIMB on reciprocalconfirmation of letters of credit (LCs).

Badr Forte Bank was established in 1991 and incorporated in Russia underthe Russian Banking Law. It is regulated by the Central Bank of Russia.

Its current paid-up capital is US$16 million and its annual turnover forthe first nine months of 2002 totalled in excess of US$500 million.

It has a network of correspondent banking relationships with over 65 banksworldwide, mainly in the developing countries of Asia and Africa.

-- BERNAMA