Kazakhstan ratifies agreement with EAEU on warehouse receipts for agricultural products
ASTANA. Nov 28 (Interfax) - The Kazakh Senate, the upper house of the country's parliament, has ratified an agreement with the Eurasian Economic Union (EAEU) aimed at streamlining the issuance and trade of warehouse receipts for agricultural products, an Interfax correspondent said.
Ratification took place at a plenary session on Thursday.
The document was signed in Moscow on July 31, 2023.
The agreement seeks to strengthen agricultural cooperation and facilitate agricultural trade within the EAEU by recognizing warehouse receipts as secure, non-documentary financial instruments, member of the Senate Committee on Agrarian Issues, Environmental Management and Rural Development Zakirzhan Kuziev said.
The types of agricultural products for which warehouse certificates are issued are determined by the legislation of the EAEU countries.
Under the agreement, warehouse receipts issued in EAEU member states will be mutually recognized and meet the union's standards.
"Ratification will allow holders of warehouse receipts to secure additional funding by using them as collateral. It will also promote the adoption and use of the Kazakh grain receipt system and create conditions for the growth of e-commerce," the Senate's concluding remarks said.
The law has been sent to the head of state for signature.
As previously reported, warehouse receipts are non-documentary, non-issuable securities that certify the holder's right to receive agricultural products from a warehouse in the quantity and quality specified at the time of issuance. They also grant the right to demand the fulfillment of obligations secured by collateral. The agreement establishes unified approaches to the circulation and redemption of warehouse receipts, sets requirements for the standard public storage contract, grants warehouses the right to issue warehouse receipts, and defines areas for ensuring state control in this sector. It also outlines the mandatory information that must be included in a warehouse receipt.