BarentsNews.com

Russian Ministry of Finance approved the Procedure for giving its notification in case the rules on setoff of mutual claims between Russian fishing companies and their foreign agents will be violated (Order No. 189 of 21 June 2003) (the “Procedure”).

Rules on setoff of mutual claims between Russian fishing companies and foreign companies that arrange sale of fish and provide Russian companies with goods and services necessary for fishing outside of Russia (their agents) are provided by Central Bank Regulation No.134-P of 20 February 2001 (the “Regulation”).

If Russian fishing company will violate the Regulation, than its commercial bank controlling settlements on setoff is obliged to inform Ministry of Finance about violations.

According to the new Procedure within 5 calendar days from a date when the Ministry of Finance will receive such information it shall be obliged to give Notification about violations to a fishing company and to a bank. It should be stressed that Russian fishing company will lose it’s right to commit setoff settlements with its foreign partner as soon as it will receive the Notification.

In order to recover its right to carry out setoff settlements with foreign agent the fishing company shall be obliged to follow the Direction that it will receive from the Ministry of Finance. After elimination of violation Russian company should give Application to the Ministry of Finance supported by necessary documents asking the Ministry to confirm that violation was eliminated. According to Clause 7 of the Procedure the Ministry of Finance shall be obliged to issue Certificate confirming elimination of violation within 10 calendar days after receipt of Application together with supporting documents from fishing company. For recovery of setoff settlements with foreign agent the fishing company should submit the Certificate to its bank.

The forms of above mentioned Notification, Direction, Application and Certificate are provided in the Procedure.

The Procedure will come into effect after expire of 10 calendar days form the date of its official publication. At the moment the Procedure is officially unpublished.

Sergei Mashkarenko.
Lawyer
Tel/Fax: +7812-174-59-50