A bank guarantee is an irrevocable commitment by a bank to pay a specified sum in the event that the party requesting the guarantee fails to perform the liability secured by the document.
A guarantee is a commitment independent of the liability under the principal debt or the agreement between the creditor and the primary debtor. By issuing a guarantee, a bank commits to pay upon first demand, provided all the conditions stipulated in this guarantee are met.
VTB Bank issues all forms of guarantees and
1) Bank guarantees common in Russian and international banking:
2) Bank guarantees stipulated by Russian law:
In addition to regular bank guarantees, VTB Bank also issues counter indemnity.
The bank offers other types of guarantee operations:
Guarantee transactions are performed in accordance with the applicable Russian legislation, international banking practices, Uniform Rules for Demand Guarantees (ICC Publication No 458), and VTB Bank regulations. Please ask our staff for more information about the procedures for issuing guarantees, as well as product descriptions and usage guidelines.
Documents required for applying for a bank guarantee from VTB Bank:
The client can be asked to produce further documents, such as documents confirming the client’s legal capacity and the authority of its executives, and financial statements. If the client is a joint stock company, and the deal is large, the bank may ask the client to produce copies of valid documents confirming that the guarantee transaction has been approved in accordance with the relevant corporate procedure stipulated in its statutes.
In compliance with Article 18 of the Federal Law on State and Municipal Unitary Enterprises No