State Duma ratifies agreement on mutual recognition of bank guarantees in public procurement in EAEU

MOSCOW. Sept 24 (Interfax) - Russia's State Duma at a meeting on Tuesday ratified agreements on the mutual recognition of bank guarantees for government and municipal procurement by members of the Eurasian Economic Union (EAEU).

The government submitted document No. 671370-8 to parliament in July.

The agreement establishes requirements for banks whose guarantees are recognized in other EAEU countries, as well as approaches to form a list of these banks and the procedure to maintain a register of issued bank guarantees, and the procedure to resolve disputes.

The text of the document indicates that measures to prevent the guarantor bank from becoming insolvent must not be applied for six months prior to the issuance of the guarantee. If the legislation of the beneficiary state requires a certain level of credit rating, it must be obtained from an accredited agency of that country or meet the criteria established by the Eurasian Economic Commission.

The agreement does not apply to purchases containing state secrets or to purchases by central banks of member states.