Belarusian MPs ratify agreements on bank guarantees, truckage with Russia

The agreement on mutual recognition of bank guarantees during state purchases was signed in Moscow on 28 September 2023. It stipulates the procedure for Belarusian banks to participate in government procurement in Russia on a permanent basis. It will allow creating a solid foundation for the consequent establishment of a common financial market of the two countries within the framework of the Union State of Belarus and Russia.

The main purpose of the agreement is to enable unhindered access to participation in state (municipal) procurement both in Russia and Belarus. The agreement focuses on enabling the mutual recognition of bank guarantees, which are issued by guarantors that are registered in the territory of the signatory states, for the sake of state (municipal) procurement.

The agreement will not apply to purchases that involve state secrets and are organized by the central banks of the signatory states. A guarantor bank will have to meet the following requirements: no bankruptcy prevention measures and no financial rehabilitation measures were applied to the bank in the last six months, a proper credit rating in compliance with the national legislation on government procurement is available. The guarantor bank has to be included into the list of organizations, which have the right to provide bank guarantees within the framework of government procurement.

The Belarusian-Russian intergovernmental agreement on international transportation by road has been signed for the sake of scrapping the system of permits for international transportation of freight by road to and from third countries. Transition to permit-free transportation will proceed stage by stage starting on 1 January 2024. All the permits for transporting freight from the territory or into the territory of all countries are supposed to be removed on 1 January 2030.

The agreement specifies when permits are not required to transport passengers as irregular service between Belarus and Russia and in transit via Belarus and Russia.

The agreement also allows coastwise shipping of freight by road while observing a number of conditions. A shipping company needs to inform the transportation oversight agency about the trip in advance and obtain authorization for it.

Belarus and Russia mutually exempt the vehicles used to transport passengers and freight within the framework of the agreement from the taxes, dues, and fees arising from the ownership or the use of said vehicles except for fees and dues, which are collected to reimburse the damage to automobile roads, and toll road fees.

The agreement's ratification will increase the volume of freight transported by Belarusian shipping companies to Russia and towards its neighboring countries.