Today Moscow hosts an international master class titled Unified Rules for Demand Guarantees: Review of International Practice, organized by ICC Russia (the Russian National Committee of the International Chamber of Commerce – the World Business Organization) in cooperation with Gazprombank OJSC. Roman Malovitsky spoke at the event.
In a global world of rapidly developing international trade the relevance of, and demand for, international bank guarantees is increasingly important. An international bank guarantee is a financial instrument that provides a warranty to a foreign partner that the counterparty will discharge its obligations under an agreement. This allows balancing the interests of the parties in international commodity/money and other relations.
The international master class featured reports by professional banking experts with years of experience in the field of guarantees and by representatives of both international and Russian law firms.
The discussions at the master class covered:
- International guarantee practice – before and after URDG rules revision.
- Effect of URDG 758.
- International recognition of new rules for demand guarantees and their efficiency.
- Advantages of URDG 758 over ISP 98 and UCP 600.
- Effect of basic contract on guarantee strategy.
- Opportunities and pitfalls for both parties – companies (applicants and beneficiaries) and banks – from a business, political and legal viewpoint.
- Specifics of the guarantee business in certain countries.
- Guarantees in English law.
- Case law in bank guarantee disputes.
Roman Malovitsky, Senior Associate at Egorov Puginsky Afanasiev & Partners, delivered a report on the practice of the guarantee business in Russia, Russian national laws in this area and the guarantee strategy.