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Newsletter Russian Desk, Independent Warranty, August 2019

Dear readers,

An independent guarantee is an effective and popular security mechanism, also in commercial financing and in complex investment and infrastructure projects. It is independent and can be used to fine-tune the obligations of the guarantor depending on particular circumstances of the project, which makes it possible to fully ensure that the creditor’s interests are protected.

Before the reform of the Civil Code only credit and insurance institutions could issue independent (bank) guarantees. After the reform, all commercial organisations can do so, which means, for example, that parent companies may issue guarantees to secure the obligations of their subsidiaries. In order to ensure uniform approaches to the new rules in respect of independent guarantees, the Supreme Court of Russia has defined important legal positions, aimed first and foremost at protecting the beneficiaries of such guarantees.

This Review will be of interest to CEOs, financial executives, and the specialists of legal departments.

Alexander Bezborodov


Newsletter Russian Desk, August 2019_EN.PDF



Newsletter Russian Desk, August 2019_RUS.PDF