Tag: CIS and Russia

Dentons, DLA and Bakers to sever ties with Russia offices as A&O and CC wind down

Baker McKenzie, DLA Piper and Dentons have taken a different course to most international law firms, separating from their Russia practices and leaving independent firms behind, rather than closing the offices entirely as a response to Russia’s continued invasion of Ukraine.

All three firms operate under a Swiss verein structure, which enables the different offices to maintain financial and regulatory independence from one another and allows for quick mergers and demergers.

Dentons announced its intentions on Monday (14 March). The Moscow and St Petersburg offices, which collectively employ over 250 people, will ‘operate as an independent law firm’, according to the firm’s latest statement.

‘This is a difficult decision which we have taken in full consultation with our colleagues in Russia in order to continue meeting our legal and ethical obligations’, said Elliott Portnoy, global chief exec of Dentons. ‘Our hope is that at a future time we will be able to come back together when it is lawfully and practically possible to do so.’

In a statement also issued on Monday, DLA said: ‘In light of Russia’s actions in Ukraine and the resulting humanitarian crisis, and our consequent decision not to act for clients connected to the Russian state, we have concluded that maintaining a presence in Russia is not aligned with our values and therefore no longer viable.

‘Accordingly, after 17 years in the country, we are withdrawing from our operations and will no longer have DLA Piper offices in Moscow and St Petersburg. Our intention is to transfer the Russian business to our team there. We will ensure an orderly transition in accordance with our legal and professional obligations to both our clients and our people.’

Baker McKenzie, which in 2004 was the first major firm to become a Swiss verein, followed suit on Tuesday (15 March), stating: ‘After 33 years operating in the country, Baker McKenzie’s current Russia operations, across both Moscow and St Petersburg, will become an independent law firm.

‘We have made this difficult decision following ongoing consultation with our multinational clients, whose urgent on-the-ground legal needs we are serving, as well as careful consideration of the wellbeing of our many people in the wider region.’

Elsewhere, Clifford Chance and A&O followed the lead of magic circle peers Freshfields Bruckhaus Deringer and Linklaters in announcing their intention to close their Moscow offices.

CC, which houses 33 lawyers in Moscow according to its website, said in a statement last Thursday (10 March): ‘Following our earlier announcements condemning the Russian invasion of Ukraine and our position on Russia related work, we have decided to progress our steps for an orderly wind down of our operations in Moscow.

‘Our priorities are to focus on the safety and wellbeing of our colleagues during this difficult time and on ensuring the winding down of our services is consistent with our legal and professional responsibilities to our clients and our responsible business principles and values.’

Also on Thursday, A&O confirmed that it ‘is to wind down its Moscow office, which will be managed in line with all legal, regulatory and professional obligations. This was not an easy decision to make as we have 55 people there and we needed to make sure that we could take this action with their best welfare in mind. We are very grateful for their hard work over many years.’

White & Case became the latest US-headquartered firm to leave the region. A statement said that after careful consideration’, the firm was in the process of ‘winding down’ its operations in Russia.

charles.avery@legalease.co.uk

This story first appeared on Legal Business.

Akin Gump, Freshfields and Latham latest to withdraw in Moscow as mass exodus ensues

Akin Gump, Latham & Watkins and Freshfields Bruckhaus Deringer are among the latest international firms to shut down or suspend operations in Moscow, as pressure to take action has mounted in light of Russia’s sustained invasion of Ukraine.

The news came after Linklaters and Norton Rose Fulbright announced their intentions to withdraw from Moscow in recent days.

As a firm with such strong ties to Russia, Akin Gump’s decision to suspend operations in the region has been particularly striking. In a statement issued on Wednesday (9 March), the firm said: ‘As a firm built by Robert Strauss, the last US Ambassador to the Soviet Union and the first US Ambassador to the Russian Federation, Akin Gump is deeply saddened and shocked by the events in Ukraine and the tragic and senseless loss of life of so many innocent Ukrainians.

‘In light of the ongoing crisis, we are suspending operations in Moscow pending further developments. We will do so in an orderly way, as the safety and well-being of our long-time colleagues and ethical obligations to clients in Moscow remain a high priority.’

Latham also took action this week. In a statement issued on Wednesday, chair and managing partner Rich Trobman said: ‘The firm will immediately begin an orderly transition, consistent with our ethical duties to our clients, to wind down operations in Moscow. During this process our focus will be principally on the safety and well-being of our colleagues in Russia.’

Elsewhere, Freshfields said in a statement: ‘We are announcing today that we will close our office in Moscow. We have been present in Moscow for 30 years and we are very conscious of the impact this news will have on our valued colleagues in Russia. However, in light of the Russian government’s actions in Ukraine, and the clear stance we have taken on Russia-related work, we believe that this is the right course of action.’

Meanwhile, Cleary Gottlieb stated that it would ‘temporarily close’ the Moscow office, ‘pending further developments’. The firm also said that it would be ‘continuing to support’ staff based in the city, but did not elaborate further on what this would entail.

Thursday (10 March) saw Herbert Smith Freehills follow the growing number of peers in intending to abandon the region. The firm, which has one of most developed Russia offerings of any international firm, said: ‘Following a review of our Russia business, we have taken the decision to close our office in the country. We are bringing to an end any work associated with the Russian State, in-line with our legal and professional responsibilities.’

Other firms to follow suit include Bryan Cave Leighton Paisner, Squire Patton Boggs, and Eversheds Sutherland. In a statement issued on Wednesday (9 March), Squires confirmed: ‘Our closure will effectively conclude our relationship with a number of clients in adherence with our professional obligations. All other existing work or new matters we undertake on a global basis will continue to remain in full compliance with all applicable laws and sanctions that are in place.’

The number of international firms yet to announce their intentions regarding Russian outposts is rapidly shrinking, and it now seems likely that the majority with a presence will shortly retrench. Firms yet to confirm they will leave Moscow include Skadden, Dentons and Baker McKenzie, all of which have well-established practices in the area.

White & Case is one firm that, at present at least, is still committed to its Russia office. A statement issued on Wednesday stated: ‘The office remains open and operational and we will provide updates when appropriate.’

charles.avery@legalease.co.uk

This story first appeared on Legal Business.

Linklaters renounces Moscow office as Russia attacks Ukraine and peers react to invasion

Linklaters’ abandonment of its Moscow office in response to Russia’s sustained invasion of Ukraine has prompted peers to react, with many more likely set to follow suit.

Linklaters announced the move to shutter the Moscow office, which houses more than 70 lawyers, including 10 partners, on Friday (4 March). The firm said in a statement: ‘We will wind down our operations in Russia and close our Moscow office. We will continue supporting our people there in the process, doing all we can to help them transfer to new roles within Linklaters or otherwise.’

Further, the Magic Circle firm vowed: ‘We will not act for individuals or entities that are controlled by, or under the influence of, the Russian state, or connected with the current Russian regime, wherever they are in the world. We will wind down existing work in accordance with our legal and professional obligations. We will continue to assist international clients in dealing with the implications of the current crisis and in unwinding their Russian business interests.’

Similarly on Monday (7 March), Norton Rose Fullbright noted in a statement: ‘We are winding down our operations in Russia and will be closing our Moscow office as quickly as we can, in compliance with our professional obligations. The wellbeing of our staff in the region is a priority. We thank our 50 colleagues in Moscow for their loyal service and will support them through this transition.

‘Some immediate actions are possible and we are taking them. We are not accepting any further instructions from businesses, entities or individuals connected with the current Russian regime, irrespective of whether they are sanctioned or not. In addition, we continue to review exiting from existing work for them where our professional obligations as lawyers allow. Where we cannot exit from current matters, we will donate the profits from that work to appropriate humanitarian and charitable causes.’

Other firms have, thus far, stopped short of seeking to withdraw from the region entirely. Freshfields Bruckhaus Deringer announced that it ‘took immediate steps to terminate, suspend or decline mandates’ and that it ‘will not act for companies or individuals with close ties to the Russian state, with connections to the wider leadership regime, and/or who play a role in supporting or facilitating the current Russian military action.’ This has included terminating its major litigation mandate with VTB, a Russian state-owned bank, but the firm has not yet announced plans to close the Moscow office.

Meanwhile Allen & Overy is taking similar measures, stating in a Linkedin post: ‘We are reviewing our Russia-related portfolio, and as a result we will refuse new instructions and stop all Russia-linked work that goes against our values.’

These sentiments were echoed by Clifford Chance, with the firm saying it would not accept new work from a ‘Russian state entity, Russian state-owned enterprises or individuals identified as having close connections to President Putin.’ It also said that it will ‘review’ existing mandates to ensure that it ‘remains consistent not only with the letter and the spirit of the international sanctions but also with our responsible business principles and values’, although the statement did not explicitly say the firm would seek to terminate any matters.

Elsewhere, Mishcon de Reya is one of the few firms to announce that it will ‘continue to act for Russian clients who are not affected by sanctions’, pointing to the fact that some of their clients ‘are themselves the target of President Putin’s government’. While not having a physical presence in the region, the firm is well known for its ‘VIP Russia’ product, which offers high-net-worth clients advice on investment, property and immigration issues.

Elsewhere, Herbert Smith Freehills has said it would be keeping a weather eye on the evolving crisis. ‘We have been shocked and deeply saddened by what continues to unfold in Ukraine. Our first immediate concern is looking after our Ukrainian and Russian colleagues. The firm’s policy will ensure that we take full account of this rapidly changing landscape in the way in which we conduct our business. This will include our ceasing to act for certain of our Russian clients and on certain Russia-related work,’ HSF said in a statement.

Similarly, White & Case said: ‘We are reviewing our Russian and Belarusian client representations and taking steps to exit some representations in accordance with applicable rules of professional responsibility. Our Moscow office is open and continues to operate. We are complying fully with all applicable sanctions, and we continue to closely monitor this rapidly evolving situation.’

Dentons is another of several firms which is keeping the situation under review: ‘In light of the rapidly accumulating sanctions, we are conducting a thorough review of existing work and new business acceptance criteria to ensure compliance with our legal and ethical obligations, firm policies, and our values. As part of this review, we have already concluded certain relationships and declined certain instructions.’

charles.avery@legalease.co.uk

This story first appeared on Legal Business.