All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

TRADE WITH REPUBLICS OF FORMER USSR

Attention of Authorized Dealers is invited to Para 2(ii) of F.E. Circular No. 6 dated the 14^th January, 1992 in terms of which letters of credit to be opened by the buyers in the Republics of the former USSR can be advised only if the same are confirmed by a 1^st class bank. The above restrictions were withdrawn vide F.E. Circular No. 23 dated the 24^th February, 1994 in so for as exports to Azerbaijan, Kazakhstan, Kirghystan, Tajikistan, Turkmenistan and Uzbekistan are concerned.

2. It has now been decided by the Government to withdraw the condition laid down in para 2 (ii) of F.E. Circular No. 6 of 1992 in so far as exports to the Russian Federation/C.I.S. countries (Commonwealth of Independent States of former USSR) are concerned. The exports to the said countries can be made either against the letters of credit opened/confirmed by a prime bank in the country concerned or on consignment basis against guarantee from the prime banks operating in the concerned country. The realized within the prescribed time limit of 120 days from the date of shipment.

3. Please bring the above to notice of your constituents.