For XIII-XV centuries, poltina was initially the name of the Russian monetary-weight cost unit equal to half a ruble of gold bar. At first this coin was introduced and circulated as a currency in 1654, it was minted from copper having a weight of 16-20 g.
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Bank Guarantees
Bank Guarantees in the Russian Federation are regulated by the Civil Code of the Russian Federation; international guarantees are regulated by ICC Uniform Rules for Demand Guarantees, Publication ¹ 458.
Russian International Bank offers the full service package to the clients regarding settlements with bank guarantee. This package includes a guarantee of:
- advise;
- documents check up;
- of issuing of guarantee on non-covered basis in frame of fixed limit;
- issue of bank’s guarantee in foreign currency by the first class banks in favor of beneficiary against counter-guarantee of Russian International Bank.
A Bank Guarantee is a letter of commitment issued as per client’s instruction (the Principal) to pay a fixed amount to the beneficiary in case of failure of the Principal to fulfill contract obligations.
A Bank Guarantee is considered to be security under purchase-and-sale contract. Russian International Bank issues all types of Bank Guarantees accepted in Russian and International practice:
• Payment Guarantee
Issued under the Buyer’s instruction in favor of the Seller. Provides execution of the payment obligation by the Buyer under the contract.
• Advance Payment Guarantee
Issued under the Seller’s instruction in favor of the Buyer for advance payment. Provides return of the sum in case goods are not delivered.
• Performance Bond
Issued under the Seller’s instructions in favor of the Buyer as a guarantee of proper fulfillment of contract obligations by the Seller.
• Tender guarantees
This type of guarantee is generally an obligatory condition to participate in tender.
• Credit Guarantee
Provides credit funds.
• Guarantee in favor of Custom Authorities
• Customs Guarantee
A Bank guarantee will allow you:
- to obtain the most favorable price conditions
- to obtain a delay in payment (commodity credit)
- to work with the countries with a high risk
- to find new market outlets with a minimum risk and expenses.
Requirements to the client to issue of the guarantee:
1. Availability of purchase-and-sale contract. Russian International Bank shall be stated as the bank-participant.
2. Settlements under a Letter of Credit shall be provided in a purchase-and-sale contract. Russian International Bank shall be stated as a bank-participant.
3. A client shall provide the Documentary Business Department with “Application to open a documentary Credit” in 3 originals.
4. A client’s balance in Russian International Bank shall cover amount of commission under Letter of Credit.
5. A payer shall provide the Bank with a pledge of the following:
• securities
• commodity and material valuables
• real estate
• deposits of legal entities
• guarantees of legal entities.
Commissions and charges under the Guarantee are paid in accordance with the Bank’s effective tariffs for legal entities (point 4.4.).
Consultancy services at all stages of transaction including preliminary discussion of payment conditions of the contract can be rendered.
