EEC to prepare draft agreement on mutual recognition of bank guarantees

YEREVAN, August 20. /ARKA/. The Eurasian Economic Commission (EEC), the executive body of the Russia-led Eurasian Economic Union (EEU) will have prepared a draft agreement on the mutual recognition of bank guarantees for public procurement before July 1, 2020, the Eurasian Development Bank (EDB) reported.

It said the agreement is expected to help ensure equal conditions for all EEU member countries in making public procurements.

When preparing the draft agreement, the EEC requested that the government of the Russian Federation amend a legislation that provides for the use of bank guarantees of the Eurasian Development Bank and the Interstate Bank after they receive credit ratings of Russian rating agencies.
This will prevent restrictions on the rights of entrepreneurs of member states who wish to participate in procurements in Russia.

The EEU Treaty provides for at least two ways to secure an application for participation in public procurement in the national legislations of member countries. One of them is a bank guarantee. However, a Russian legislation restricts acceptance of bank guarantees issued by banks of other five member countries.

In accordance with the legislation of the Russian Federation, banks that are granted the right to issue bank guarantees for public procurement must be included in a special list compiled by the Ministry of Finance of Russia and have an appropriate rating assigned by rating agencies. –0–

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