The federal draft law on Russia’s joining of the Convention on International Factoring (UNIDROIT) has been prepared in keeping with a Government-endorsed action plan to facilitate Russian companies’ export operations and access to foreign markets.

Enacted on 28 May 1988, UNIDROIT regulates relationships formed when using factoring contracts and quitclaim deeds. Specifically, it defines the rights and duties of parties to a factoring agreement.

The Convention’s signatories include Ghana, Guinea, Nigeria, the Philippines, Tanzania, Morocco, France, the Czech Republic, Finland, Italy, Belgium, the United States, Slovakia, Germany, the UK and Panama. It has been ratified by France, Germany, Hungary, Italy, Latvia and Nigeria.

According to Article 13, the Convention is open for any non-signee country to join.

Russia’s intention to sign up to it arises from the need to bring national legislation in line with international factoring standards.

Many of Russia’s factoring companies and banks that provide factoring services show a keen interest in international factoring these days. The International Factoring Association predicted this country’s aggregate factoring turnover to reach 2 trillion roubles in 2013.

Russia’s joining of UNIDROIT and its subsequent improvement of related national legislation is expected to make more efficient the support of small- and medium-sized businesses in this country while creating conditions for raising Russian banks’ competitiveness at the banking services market.