Sergey Bakeshin has commented on the banking guarantee of Globex bank in the case of Mostostroi Number 6

Newspaper ‘Who’s building in St Petersburg’ has published an article on the topic of Globex’s attempt to challenge a banking guarantee for the performance of a government contract valued at 355 million roubles for the liabilities of company Mostostroi Number 6.

The guarantee related to the construction of a transport link at the intersection of Zelenogorodsk highway and Bolshoy Prospekt Kurortnoy district with railway line near Repino station.  The project was commissioned by the Directorate for Transport Construction.

Senior Associate and Head of the Department for Dispute Resolution at Maxima Legal, Sergey Bakeshin, said that the “legal nature of banking guarantees supposes its independence from any other obligations, including the obligation for performance of which is provided for by the banking guarantee.

The grantor of the guarantee (in this situation, Globex) is obligated to make payment on a claim from the beneficiary (the Directorate for Transport Construction), if the claim fulfils the formal requirements set out in the guarantee.  In such a situation, the grantor cannot oppose payment with reference to the ineffectiveness or end of the obligation provided for by the guarantee or cite a dispute in its performance.  The grantor should review the claim from the beneficiary in accordance with the formal requirements, evaluate the enclosed supporting documentation and make payment.”

For the full version of the article, please see newspaper ‘Who’s building in St Petersburg’ number 30-31 (525).