VTB Bank has taken an active part in revising the Uniform Rules for Demand Guarantees and preparing their Russian edition.
Documents establishing unified international practice for trade finance are subject to review on a 10-year basis. In case of the Uniform Rules for Demand Guarantees, standards have not been reviewed since 1992. The new revision reflects modern trends in guarantee business and incorporates a number of new articles.
VTB Bank has developed comprehensive forms of bank guarantees for its customers, which comply with international standards and may be used to secure obligations both in foreign economic activities and in transactions between Russian residents.
Natalia Fedorova, Head of VTB Trade Finance & Currency Control Division, said: “International practice established by the Uniform Rules will contribute significantly to promotion of bank guarantees as an efficient instrument for securing contractual obligations”.
VTB Bank is a member of the International Chamber of Commerce (ICC), Paris, and the Russian National ICC Committee.
Effective as from 1 July 2010, the new revision of the Uniform Rules for Demand Guarantees (URDG 758) is a framework document that sets common standards and regulates international practice of guarantee business.The Uniform Rules contain examples of guarantees and counter-guarantees that may be used by Russian companies engaged in foreign economic activities as a pattern for structuring the terms of their foreign trade contracts.