Eurasian Commission prepares draft Agreement on mutual recognition of bank guarantees by the EAEU States

_ EEC. Moscow, 20 August 2019.

The draft Agreement on mutual recognition of bank guarantees in public procurement will be prepared before July 1, 2020. This work was entrusted to the Competition and Antitrust Regulation Unit of the Eurasian Economic Commission (EEC) following the results of the EEC Council’s meeting.

The document will allow ensuring equal conditions for businesses of the Eurasian Economic Union (EAEU) States in implementing national treatment in the sphere of public procurement.

For the time
 the draft Agreement is being prepared, the EEC Council solicited the Russian Government to introduce into their legislation the amendments stipulating the use of bank guarantees of the Eurasian Development Bank and the Interstate Bank once the latest would receive a credit ranking from the Russian ranking agencies.

This will 
allow preventing restrictions on the rights of the Union States’ entrepreneurs that wish to participate in procurement processes held in Russia.

It bears reminding that the Treaty on the EAEU 
stipulates for at least two ways of ensuring tender security in public procurement procedures to be available in the Union countries’ legislation. A bank guarantee is one of them. However, nowadays Russia has set a restriction, on the legislative level, on accepting bank guarantees issued by banks of other “five” States.

In accordance with the 
Russian legislation, banks which are granted the right to issue bank guarantees for public procurement purposes should be included in a special list formed by the Ministry of Finance of Russia and should have an appropriate ranking given by ranking agencies.

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