CHANGE: |
As of September 1, 2013, due to the amendment of the Civil Code of the Russian Federation, failure to observe simple written form for foreign trade transactions will no longer result in their invalidation. Following the amendment, commercial contracts will still need to be in writing. However, failure to observe simple written form for a foreign trade transaction will deprive the parties of the transaction to the right to testify to the confirmation of its existence and terms. The parties will still be allowed to present written and other evidence in this regard.
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BENEFITS: |
Before the introduction of this amendment, Russian banks refused to conduct currency operations or to issue a transaction passport in the absence of a written agreement signed by all of the parties or an electronic agreement signed by means of electronic digital signatures by all of the parties. The amendment, which is currently in effect, should result in simplifying the flow of documents for foreign trade transactions and for the conduct of currency operations, particularly in cases where the goods have already been imported or the services provided. Judicial practice in matters relating to the breach of a foreign trade transaction by one of the parties should become more favourable to the party undertaking to prove that a transaction had been entered into and its terms by means of evidence in different forms other than testimony (e.g. by e-mail correspondence).
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RISKS: |
In spite of the generally positive effect of the amendments, the following risks remain:
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RECOMMEN-DATIONS: |
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Published 10.09.2013. Effective date 10.09.2013.