Mutual recognition of bank guarantees in public procurement in the EAEU

On March 20, 2023, a meeting with representatives of the EAEU member states to discuss a draft Agreement on mutual recognition of bank guarantees in public procurement was held under the chairmanship of B.T. Sultanov, a member of the EEC Board on Competition and Antimonopoly Regulation.

The adoption of the Agreement will ensure mutual recognition of bank guarantees and increase the mutual participation of suppliers of member states in public procurement of the EAEU countries.

Today, in some Member States, obstacles remain to the recognition of bank guarantees issued by banks of other Member States. For example, in public procurement in Russia, a bank guarantee of banks rated only by Russian rating agencies and included in a special list of banks is accepted as collateral for an application for participation and enforcement of the contract.

Following the consultations, representatives of the EAEU countries agreed that the provisions of the draft Agreement will allow to settle the existing restrictions on mutual recognition of bank guarantees during public procurement.

At the suggestion of the Ministry of Trade of Kazakhstan, an agreement in principle was reached between the countries on the adoption of additional amendments to the EAEU Treaty aimed at resolving gaps in the EAEU law and bringing it into line with the provisions of the draft Agreement.

The draft Agreement is planned to be considered during the meeting of the EEC Council scheduled for March 30 of this year and sent to the domestic procedures necessary for signing the Agreement.