This text is part of the special section Le droit au Québec
Russia’s invasion of Ukraine and the sanctions imposed to try to curb it put law firms in an uncomfortable position. Dentons, Gowling WLG and Norton Rose Fulbright, three firms present in Quebec, have ceased or suspended their activities in Russia.
“Firms must analyze the situation from several angles, such as legal and ethical obligations towards their clients, compliance with economic sanctions, commercial impacts and effects on their reputation”, summarizes Vladyslav Lanovoy, assistant professor of public international law at the ‘Laval University. He adds that firms must also consider the agreements that bind them to their Russian entities and cut ties in an orderly manner.
Mass exile
A sign of the delicate nature of the situation, none of the three firms active in Quebec wanted to grant an interview, referring us instead to their press release.
Gowling WLG, the first Canadian law firm to open an office in Moscow, was the sharpest in its communications. The firm has confirmed in a press release that it will no longer accept any new mandates from Russian clients, sanctioned or not, and that it will terminate all relations with Russian clients. She also supports working with charities, such as the Red Cross and the UN Refugee Agency, to help Ukrainians. Gowling WLG relied on twenty lawyers in Russia.
Norton Rose Fulbright suspends its activities in Russia and will close its offices in Moscow “as soon as possible”. The firm has 50 colleagues there. It will no longer accept mandates from companies, entities or individuals linked to the current Russian regime, whether sanctioned or not, but may continue to serve certain Russian clients. Its press release specifies that “in the event that we cannot extract ourselves from a current file, the profits generated by the work carried out will be paid in the form of donations to humanitarian and charitable works”.
Dentons, which represented Gazprom and Rosneft — two firms targeted by the sanctions — is also leaving Russia and will turn its offices in Moscow and St. Petersburg into independent entities. She did not specify, however, the links she could maintain with them. It has more than 250 lawyers in Russia. In an interview with the Reuters news agency, Dentons indicated his willingness to continue to support his former Russian colleagues “as far as the law allows us”.
Public pressure
Robert Daines, professor of law and commerce at Stanford University in California, has created a website in which he collects the reactions of the 100 largest law firms active in the United States, including Gowling WLG and Norton Rose Fulbright. “I was horrified by the Russian invasion of Ukraine and especially by the attacks on civilians, and the number of multinationals that quickly left Russia pleasantly surprised me,” he says. However, I found that law firms were slower and less firm in their decisions. »
As of March 25, his list included two firms — including Gowling WLG — which are cutting all ties with Russia outright and three others — including Norton Rose Fulbright — which refuse to collaborate with entities and individuals associated with Vladimir Putin’s regime. or subject to sanctions. A group of 30 firms has announced that they are reviewing their activities in Russia, without specifying whether they would agree to work for clients sanctioned or linked to the regime. Some of those closing their offices in Russia could very well continue to serve them from other countries.
“There are three reasons why certain firms could keep their Russian clients: the lure of profit, legal or ethical obligations or even the desire to defend opponents of Vladimir Putin’s regime in Russia”, suggests Professor Daines. He believes that the more the names of the firms that decide to continue to serve Russian customers will circulate publicly, the more the pressure for them to change their approach will become strong.
For his part, Vladyslav Lanovoy believes that Russia will long pay the price for its Ukrainian aggression. “This conflict will create a lot of disputes, for example concerning foreign investments that have been seized by the Russian government, he recalls. However, Russia will find itself very isolated in its legal representation. It will only be able to count on Russian lawyers, while cheated investors will rely on large international firms. »
It remains to be seen how quickly the cabinets will return to Moscow and St. Petersburg when the guns have fallen silent.