Specific of Bank Guaranties Register Application in Public Procurement System of Russian Federation

<p>The bank guarantee is relatively new for Russian public procurement practice. This term was introduced in 1994 by new version of Russian Civil Code. There are two main types of bank guarantees in international practice: firstly, bank guarantee in paper form and, secondly, bank guarantee in electronic form.</p><p>Furthermore, Russian institutional context determines a wide range of features of the bank guarantees application in the public procurement system application. It means differences between international and Russian experience. These facts provides relevance of this study.</p><p>Moreover, public procurement is Achilles&#39; heel of Russian public administration. There are many corruption cases in this scope, which led to the decrease of government efficiency. It can be explained by lack of legislature and other institutional factors.</p><p>Meanwhile, the main problem of this research is contradiction between international and Russian practice, which led to features owing to Russian institutional context. This field is relatively new for national socio-economic science, but international science analyzed different aspects of this.</p><p>Thus, the object of this study is bank guarantee in public procurement. The subject of this research is features of the bank guarantees application in the public procurement system of the Russian Federation.</p><p>While, the chief aim of this paper is to identify key features of the bank guarantees application in the public procurement system of the Russian Federation. It determines the set of tasks as following. The first task is to analyze theoretical basis of bank guarantee in case of Russia. The second purpose is to compare Russian and international practice in this field. The third one is to identify practical recommendations for improving this aspect.</p><p>In other words, there are two chief questions of this study. The first one is what main special aspects of Russian practice in this field are. The second question deals with similar and differences of Russian and international practice.</p><p>These tasks requires two main hypothesis. Firstly, the economic and institutional factors is more important than technological in case of bank guarantees application. Secondly, the quantity of similar is larger than amount of differences in the context of research field of this paper.</p><p>The novelty of paper is clear, because there is not universal insight in issue of impact Russian institutional context on bank guarantees application in public procurement. As analytical surveys show the problem hasn&#39;t been solved yet. It means that the problem has not been thoroughly analyzed. It can be explained by the newness of the issue.&nbsp; Thence most of recent analyses fall short of simple explanation of main processes but they do not take into account specific aspect of Russian institutional context. It means that this issue is blind spot in modern public procurement science.</p><p>The practical importance of this paper is set of recommendations for improving actual public procurement system in case of bank guarantees.</p><p>The study is organized into three charters. The first charter is the description of theoretical basis of study. The second one is devoted to review of key similar and differences between Russian and international practice. In third part of paper, the focus is put on features of Russian model of bank guarantees application.</p>