Since the start of recent reforms, the Eurasian Economic Union (EAEU) has been actively removing obstacles in public procurement, aiming to create a more open and predictable market for suppliers from member states. A central focus has been the elimination of technical barriers, notably those tied to national rules on bank guarantees. The current discussion in leading business press highlights how Russian legislation previously restricted guarantees to a narrow list of banks that must be included by the Ministry of Finance and rated by a Russian credit agency. This framework complicated cross-border participation and raised concerns about equal access to procurement opportunities across the bloc.
With a view toward harmonizing practices, the EAEU collective reached a policy decision to remove these barriers and to recognize guarantees issued by banks from all EAEU member countries. An agreement to this effect was signed by the Eurasian Economic Commission (EEC) Council, signaling a clear shift toward mutual recognition of financial instruments used in bids and tenders. In practical terms, this means suppliers can rely on their own national banking institutions to back their bids, reducing the need to navigate a separate, potentially restrictive list of local banks. Such alignment aims to facilitate a smoother path for participants from across the union and to strengthen the overall integration of the public procurement system.
Analysts note that this agreement addresses several pre-existing frictions that limited cross-country participation. While there were no formal provisions prohibiting access, divergent national requirements created artificial barriers that deterred some suppliers. The move to standardize and recognize instruments across borders aligns with a broader digitization agenda launched in 2022, when the EAEU approved a set of measures designed to accelerate the digital transformation of public procurement. This trend is intended to increase transparency, speed, and reliability in how suppliers compete and how contracts are awarded within the union.
At present, participants from EAEU states seeking to bid for Russian public procurement opportunities have two primary options to secure their applications: a bank guarantee or a cash contribution placed into a dedicated account. Each route previously demanded additional checks and formalities to ensure the security of bids. For instance, the Russian Ministry of Finance required that bid security be held in special accounts with authorized banks, rather than directly with bidders or customers. This arrangement necessitated compliance steps such as registration with the Russian tax authorities and completion of related administrative tasks for suppliers from member countries. Notably, those restrictions were eased in mid-2022 as part of the broader modernization push, simplifying the process for many participants without compromising security.
Regarding the guarantees themselves, the governing rules are now established at the national level in line with the overarching EAEU agreement on mutual recognition. Participation in Russian public procurement transactions can be supported by guarantees issued by banks that are listed by the national authorities and hold a credit rating within their own jurisdiction. This framework preserves the integrity of financial assurances while removing redundant cross-border frictions, making it easier for firms from all EAEU states to participate on a level playing field. The practical effect is to reduce delays, lower transactional costs, and promote a more competitive environment where procurement decisions are driven by value and capability rather than by administrative diversity.
In the closing notes of the current landscape, it is worth mentioning the evolving regional dialogue regarding broader possibilities for economic transition in adjacent regions. While separate conversations have touched on collaboration with international partners, the core emphasis for the EAEU remains on strengthening internal processes, harmonizing standards, and expanding the reach of its procurement market. The result is a more cohesive framework that supports suppliers across member states, enhances predictability for contracting authorities, and strengthens the overall efficiency of cross-border public procurement within the union.