On the ratification of the Agreement on the Mutual Recognition of Bank Guarantees in the Implementation of State (Municipal) Procurement

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The Law of the Republic of Kazakhstan dated January 24, 2025 No. 160-VIII SAM.

To ratify the Agreement on the Mutual Recognition of Bank Guarantees in the Implementation of state (Municipal) Procurement, concluded in Moscow on August 29, 2023.

President

Republic of Kazakhstan

K. TOKAEV

AGREEMENT on mutual recognition of Bank guarantees in State (municipal) Procurement

The Member States of the Eurasian Economic Union, hereinafter referred to as the Member States,

based on the provisions of the Treaty on the Eurasian Economic Union of May 29, 2014 (hereinafter referred to as the Treaty),

Expressing interest in strengthening cooperation in the field of public (municipal) procurement on a long-term and stable basis,

Sharing the desire to ensure unhindered access to potential suppliers and suppliers registered in the territory of one Member State to participate in state (municipal) procurement conducted in another Member State,

Based on the principles of equality and mutual benefit, taking into account the economic interests of the Member States,

taking into account the need for proper protection of the rights of customers in the implementation of state (municipal) procurement,

have agreed on the following:

Article 1

For the purposes of this Agreement, concepts are used that mean the following::

"bank guarantee" is a guarantee (independent guarantee) issued by a guarantor registered in the territory of the principal's member state to secure obligations stipulated by the legislation of the beneficiary's member state in the field of state (municipal) procurement;

"beneficiary" - the customer in whose favor the bank guarantee has been issued;

"principal" is a potential supplier or supplier who has been provided with a bank guarantee.;

"Register of bank guarantees" is a register of the beneficiary's member State containing information on issued bank guarantees provided for by the legislation of the beneficiary's member State in the field of state (municipal) procurement.

Other concepts used in this Agreement are applied in the meanings defined by the Treaty and international treaties within the framework of the Eurasian Economic Union.

Article 2

The subject of this Agreement is to ensure mutual recognition of bank guarantees issued by guarantors registered in the territory of the principal's member State for the purposes of state (municipal) procurement carried out by a beneficiary of another Member State.

Bank guarantees issued subject to the provisions of this Agreement shall be recognized by the Member States in the course of State (municipal) procurement.

This Agreement does not apply to:

state (municipal) procurement, information about which, in accordance with the legislation of the Member States, constitutes a state secret (state secrets);

purchases carried out by the national (central) banks of the Member States.

Article 3

The guarantor registered in the territory of the principal's member State must be a bank in accordance with the legislation of that Member State and comply with the following requirements:

the absence of measures applied to the guarantor in accordance with the legislation of the principal's member State to prevent its economic insolvency (bankruptcy) and improve its financial condition (financial recovery) during the last 6 months;

if the requirement for a credit rating is provided for by the legislation of the beneficiary's member State, the credit rating assigned by the credit rating agency of the beneficiary's member State, the level requirement of which is provided for by the legislation of the beneficiary's member State, or compliance with criteria approved by the Council of the Eurasian Economic Commission (hereinafter referred to as the Commission).

Article 4

1. A guarantor registered in the territory of the principal's member State and meeting the requirements set out in Article 3 of this Agreement, in order to issue a bank guarantee for participation in state (municipal) procurement of a beneficiary of another Member State, must be included in the list of guarantors of the beneficiary's member State (hereinafter referred to as the list of guarantors), if the legislation of the beneficiary StateThe formation of such a list is provided for the beneficiary's member in the field of state (municipal) procurement. The establishment by the legislation of the beneficiary's member State in the field of state (municipal) procurement of requirements for guarantors not provided for in this Agreement for the purpose of including guarantors in the list of guarantors is not allowed.

Inclusion in the list of guarantors is carried out in accordance with the procedure established by the legislation of the beneficiary's member State in the field of state (municipal) procurement, based on information received by the authorized body of the beneficiary's member State from the authorized body of the principal's member State.

2. The guarantor is excluded from the list of guarantors on the basis of information from the authorized body of the member State of the principal in the following cases::

non-compliance of the guarantor with the requirements of this Agreement;

submission of a written application by the guarantor for exclusion from the list of guarantors.

3. Exclusion of the guarantor from the list of guarantors does not terminate the bank guarantees issued and accepted by the beneficiary and does not release the guarantor from responsibility for non-fulfillment or improper fulfillment of obligations under such bank guarantees.

4. The composition of the information provided for in this article, as well as the procedure for the exchange of such information, shall be determined by the Council of the Commission.

Article 5

The form and content of the bank guarantee must comply with the requirements of the legislation of the beneficiary's member State. The bank guarantee must be included in the register of bank guarantees in accordance with the procedure established by the legislation of the beneficiary's member state in the field of state (municipal) procurement (if such legislation provides for the formation of the specified register).

The legislation of the beneficiary's member State applies to relations related to the submission of a bank guarantee claim by the beneficiary to the guarantor, with its consideration by the guarantor.

Article 6

Disputes and disagreements between the beneficiary and the guarantor, as well as between the beneficiary and the principal, are considered in court at the place of registration of the beneficiary in accordance with the legislation of the beneficiary's member State.

Article 7

The Member States shall identify the authorized bodies responsible for the implementation of this Agreement, which they shall inform the Commission about at the same time as notifying them of the completion of the internal procedures necessary for the entry into force of this Agreement.

Article 8

The Member States shall independently bear the costs associated, inter alia, with the creation, and (or) maintenance, and (or) modernization of the list of guarantors and the register of bank guarantees, when implementing this Agreement by the Member States.

Article 9

By mutual agreement of the Member States, amendments may be made to this Agreement, which are formalized in separate protocols and are an integral part of this Agreement.

Article 10

Disputes related to the interpretation and/or application of this Agreement are resolved in accordance with the procedure established by the Agreement.

Article 11

This Agreement is an international agreement concluded within the framework of the Eurasian Economic Union and is included in the law of the Eurasian Economic Union.

This Agreement shall enter into force on the date of receipt by the depositary, through diplomatic channels, of the last written notification on the completion by the Member States of the internal procedures necessary for the entry into force of this Agreement.

Done in Moscow on August 29, 2023, in one original copy in the Russian language.

The original copy of this Agreement is kept in the Eurasian Economic Commission, which, as the depositary of this Agreement, will send each member State a certified copy of it.

For the Republic

Armenia

For the Republic

Belarus

For the Republic

Kazakhstan

For Kyrgyz

The Republic

For the Russian

The Federation

I hereby certify that this text is a complete and authentic copy of the Agreement on Mutual Recognition of Bank Guarantees in State (Municipal) Procurement, signed on August 29, 2023 in Moscow.:

for the Republic of Armenia - Deputy Prime Minister of the Republic of Armenia Mikhail Grigoryan;

for the Republic of Belarus - Deputy Prime Minister of the Republic of Belarus I.V. Petrishenko;

for the Republic of Kazakhstan - Deputy Prime Minister - Minister of Trade and Integration of the Republic of Kazakhstan S.M. Zhumangarin;

for the Kyrgyz Republic - First Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic A.A. Kasymaliev;

for the Russian Federation - Deputy Chairman of the Government of the Russian Federation - A.L. Overchuk.

The original copy is kept at the Eurasian Economic Commission.

Director

Legal Department

Of the Eurasian Economic Commission

V.I. Taraskin

President

Republic of Kazakhstan

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