EEU member countries agree on mutual recognition of bank guarantees for public procurement

YEREVAN, September 5. /ARKA/. The Eurasian Economic Union’s (EEU) five member countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia) have agreed on mutual recognition of bank guarantees for public procurement, Khabar 24 reported.

The agreement, eliminating one of the restrictions on the EEU common market, was signed

at a meeting of the Eurasian Economic Commission Board in Moscow by the deputy prime ministers of the EEU member countries.

The agreement sets single requirements for banks, whose guarantees will be recognized in other states of the EEU in public procurement, as well as regulates formation of a list of such banks and the procedure for maintaining a register of issued bank guarantees.

Thus, a potential supplier from any EEU member state will be able to provide the customer of another country with a guarantee of its bank, which meets the established criteria.

"This significant help allows businesses to provide and create tools for penetration into the public procurement market of other EEU countries. Today, if we take the figures for 2022, the government procurement market of all five countries is about the equivalent of $190 billion. We have exceeded this figure in three quarters this year. That is, at the end of the year, it may exceed $200 billion. But according to last year's figures, only 1 million US dollars was the mutual penetration of entrepreneurs of our countries into the government procurement market," said EEC Minister for Competition and Antimonopoly Regulation Bakhyt Sultanov. -0-