#44 The Legal Profession This Week - Law Firms and Their Stance on Russia​

By Dheepa​

Law Firms and Their Stance on Russia

In the wake of the ongoing Russia-Ukraine war, major Western governments have announced stringent economic sanctions against Russia. In the UK, the government is also pressuring corporations to drop their holdings in major Russian companies. Some law firms have chosen to respond in a similar vein, by dropping major Russian clients.

On Monday, Baker McKenzie and Sidley Austin were the first firms to announce their decision to remove Russian clients from their roster. While Baker McKenzie did not specify which clients were being cut, Sidley Austin named one of Russia’s largest banks, VTB Group. Ashurst has also reportedly stopped accepting work from “new and existing Russian clients” (Law.com).

On the other end of the spectrum, Norton Rose Fulbright (NRF) reportedly banned all employees from commenting on the conflict in both a professional or private capacity. According to The Lawyer, the memo said: “Due to the sensitive nature of this topic and the major media interest, please refrain from providing any commentary, whether to the media, on social media channels, in social situations, in external presentations or any other channel.” The firm has since retracted its memo, stating that it is not preventing employees from voicing their views. NRF has particularly strong ties with Russian energy giants Gazprom and Rosneft Oil Company. Rosneft reportedly supplies fuel to the Russian military (Financial Times).

Other law firms with a history of advising major Russian companies include Freshfields Bruckhaus Deringer, DLA Piper, CMS Cameron McKenna, Clifford Chance, Cleary Gottlieb Steen & Hamilton, Latham & Watkins, Skadden Arps Meagher & Flom, Debevoise & Plimpton, Bryan Cave Leighton Paisner and Dentons. In the past, Magic Circle firm Linklaters has also faced scrutiny from the UK Government for refusing to engage in discussions on its role in the listing of Russian energy company En+ Group on the London Stock Exchange. While many of these firms have stayed silent on the escalating conflict, others like Linklaters, Hogan Lovells and White & Case have taken a more moderate approach by opting for an ongoing evaluation of their Russian client list.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Hogan Lovells and Freshfields Bruckhaus Deringer are advising on the sale of U.K. logistics company Clipper to GXO, a New York based company. Hogan Lovells is acting for Clipper while Freshfields is leading for GXO.


Image Credit: Michael715 / Shutterstock.com