Diana Alexeeva, Irina Mikheeva Counter Guarantee: Legal Regulation and Problems of Application by Russian Banks COUNTER GUARANTEE: LEGAL REGULATION AND PROBLEMS OF APPLICATION BY RUSSIAN BANKS 331 By Diana Alexeeva (Russian Federation) And Irina Mikheeva (Russian Federation) Authors Diana Alexeeva – Doctor of Law, Professor of the Chair of Banking Law, practicing bank lawyer lilu-kd@mail.ru; Irina Mikheeva – PhD in Law, Deputy Head of the Chair of Banking Law, Kutafin State La University (MSAL), practicing bank lawyer ya.miheeva@yandex.ru Volume 2 Оctober 2016 Issue 2(6) www.kulawr.ru 332 KUTAFIN UNIVERSITY LAW REVIEW Abstract In the paper the issues of legal regulation of counter guarantees (indirect guarantees) in Russia and the problems of their application by Russian banks are considered. <...> On the basis of the conducted research of international instruments, the Russian legislation and court practice, authors explain the legal basis of counter guarantees, reveal legal risks in case of their use in banking practice, offer the ways of minimizing. <...> The Concept and Legal Regulation of a Counter Guarantee . 333 III. <...> An Agreement Between a Guarantor and a Principal for Execution of Which a Guarantee is Issued . 338 V. Legal Problems of Identification of a Proper Debtor Under a Counter Guarantee . 340 VI. <...> Its effective application requires creating the corresponding standard and imposing legal requirements. <...> Nowadays in Russia a large-scale civil legislation reform www.kulawr.ru Volume 2 Оctober 2016 Issue 2(6) Diana Alexeeva, Irina Mikheeva Counter Guarantee: Legal Regulation and Problems of Application by Russian Banks 333 aimed at creating new and enhancing already operating legal frameworks is in progress. <...> Unfortunately, the legal regime of the counter guarantee in the legislation of Russia has not been settled yet. <...> Under Article 156 of the Civil Code of the Russian Federation mixed agreements can be applied to a counter guarantee as a unilateral transaction. <...> In Russia there is no special legislation regulating the legal regime of a counter guarantee. <...> The issuance of a counter guarantee and its essential requirements are determined in accordance with the Uniform Rules for Demand Guarantees (ICC Publication No. 758, revised in 2010) (hereinafter “URDG 758” or “Uniform <...>