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Russia ratifies agreement on mutual recognition of bank guarantees in EAEU

Requirements for the level of the guarantor's credit rating, the form and content of the bank guarantee will be established by the legislation of the beneficiary's member state

MOSCOW, September 30. /TASS/. Russian President Vladimir Putin signed a law ratifying the intergovernmental agreement on mutual recognition of bank guarantees for public procurement in the member countries of the Eurasian Economic Union (EAEU).

The goal of the agreement is to ensure mutual recognition of bank guarantees for the implementation of state or municipal procurement carried out by the beneficiary of another state. The document will not apply to public procurement, information about which constitutes a state secret or carried out by national banks.

The agreement defines the requirements for banks. Requirements for the level of the guarantor's credit rating, the form and content of the bank guarantee will be established by the legislation of the beneficiary's member state.

As noted in the accompanying documents to the law, in Russian public procurement, a guarantee from banks rated only by Russian rating agencies is accepted as security for an application for participation and security for the execution of a contract.

They must also be included in a special list of banks maintained by the federal executive body for regulating the contract system in the field of procurement (the Finance Ministry).

Requirements for the level of the guarantor's credit rating and bank guarantees, as well as the procedure for including the guarantor in the list of banks, are established by the legislation of the customer state. The agreement was signed in Moscow on August 29, 2023 and was concluded to ensure unimpeded access for potential suppliers registered in the territory of one EAEU member state to participate in public procurement in another state.

The Eurasian Economic Union is an international organization for economic integration that brings together Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. Uzbekistan, Moldova and Cuba are observer countries.