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EAEU countries to consider launching pilot project on mutual recognition of bank guarantees for public procurement purposes

EAEU countries to consider launching pilot project on mutual recognition of bank guarantees for public procurement purposes

9/4/2020

The Council of the Eurasian Economic Commission has adopted a disposition whereby the authorized bodies and national banks of the Eurasian Economic Union Member States are invited to launch pilot projects on mutual recognition of bank guarantees issued by the EAEU countries’ banks for public procurement purposes.

 

This has been made possible due to the fact that the Russian Federation amended Federal Law No. 44-FZ dated April 5, 2013 "On the contract system for procurement of goods, works and services for state and municipal needs" in April this year. The reference to the Russian origin of credit institutions wishing to obtain credit ratings required for inclusion in the list of banks which bank guarantees can be recognized in public procurement in the Russian Federation has been canceled. Therefore, no legal barriers remain for the Member States’ banks to participate in issuing bank guarantees for public procurement purposes conducted in the Russian Federation - the EAEU countries’ banks can start working on obtaining appropriate ratings from the Russian rating agencies and enter this list.

 

Simultaneously, the EEC Council has instructed the Commission, jointly with the Member States, to continue working on ensuring possible recognition of the bank guarantees issued by the Eurasian Development Bank and the Interstate Bank.

 

An arrangement was reached at the EEC Council’s meeting held in August 2019 that the Russian Federation would make amendments to its legislation required for recognizing bank guarantees issued by these financial institutions in public procurement.​