This Article examines the Soviet system for financing the purchase and sale of goods by a Soviet enterprise from a Western merchant. This Article is organized chronologically, commencing with the initial contact between a Western merchant and an FTO, the merchant's liaison with Soviet industrial enterprises.
The Article examines the role of the FTO in mediating relations between Soviet enterprises and their Western contracting partners. It then examines the procedures employed by the Bank for Foreign Trade to establish the credit, to handle the documentary transaction, and to determine whether to honor the seller's demand for payment. The Article finally considers two financing devices less frequently used in international trade, documentary drafts and bank guarantees.
George M. Armstrong, Jr.,
Letters of Credit in East-West Trade: Soviet Reception of Capitalist Custom,
17 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vjtl/vol17/iss2/3