On December 24, the Council of the Eurasian Economic Commission approved the draft Agreement of Release (Issue), Circulation and Redemption of Warehouse Certificates for Agricultural Products within the Eurasian Economic Union.
"The document is aimed at developing the practice of handling warehouse certificates in the Eurasian Economic Union and provides for their mutual recognition by the EAEU Member States based on the common requirements in this area," Artak Kamalyan, EEC Minister in charge of Industry and Agriculture explained.The Agreement establishes unified approaches to the circulation and redemption of warehouse certificates, requirements for a standard public storage agreement and granting the warehouse the right to issue warehouse certificates. The document also fixes the directions for ensuring state control in this area and the mandatory information that a warehouse certificate must contain. In the future, the EEC Council will determine the requirements for ensuring the fulfillment of obligations under warehouse certificates in the Union States.
So far, only Kazakhstan has ensured the actual circulation of warehouse certificates (grain receipts). Other EAEU countries will have to develop, with due account for the agreement, legal and organizational measures for the functioning of the national system for warehouse certificate circulation and determine priority types of products with a relatively long shelf life (for example, apples, cheese, frozen meat, skimmed milk powder).
"Sustainable circulation of such securities will serve as an additional impetus for developing the entire infrastructure of electronic commerce and related services in the Eurasian Economic Union, and will open up the possibility of attracting borrowed funds secured by warehouse certificates," Artak Kamalyan concluded.
The draft agreement has been sent to the countries of the Union to conduct the internal procedures required for its signing.