The Russian Grain Union with the support of FAO UN and EBRD is developing a law in draft “About the grain warehouse certificates for public use” which makes provision for imposition of warehousing receipts.

First of all, the enactment of the law allows:

1) To develop an opportunity of the credit resources obtaining for agricultural producers;

2) To create a consistent system of the warehouses` operation;

3) To provide high quality of the grain storage;

The warehouse certificates are effectively for the attraction of investments to agriculture, due to the fact that it allows agricultural producers to obtain a credit without an additional pledge. A grain owner who has a document, confirming his right to the commodity, obtain a credit, but the grain can be sold when the period is much more profitable for the grain owner. The grain producer thereby insures the risks, besides the Bank reduces its risks as well, because it has the financial credit document as a pledge, confirming the grain availability.

The relations, appeared due to the circulation and the redemption of the double warehouse certificate and its parts (a warehouse certificate and a subscription warrant), and also the common warehouse certificates on the market, is the subject of the bill draft regulation “About the double and the common warehouse certificates”.

The double warehouse certificate consists of two parts: the first one is a warehouse certificate and the second one is a subscription warrant, which each are non-emissive securities. A common warehouse certificate is a security of title to a presenter. The commodity, accepted in accordance with the rules of the double warehouse certificate or the common warehouse certificate, might be the subject of pledge and should be insured against loss, short, and damage.