Russias_WTO_offer_sparks_fears_of_office_closures

English law firms in Russia face the prospect of having to reorganise their offices along the lines of barristers chambers or face closing down, following...English law firms in Russia face the prospect of having to reorganise their offices along the lines of barristers chambers or face closing down, following Russias latest offer to join the World Trade Organisation (WTO).

There are around a dozen City firms in Moscow.

Under a revised schedule of commitments that prospective members are required to make, delivered last month, Russia has added a clause that the supply of legal services should only be by individual entrepreneurship and not in any corporate form.

Other proposed restrictions are that foreign lawyers could only provide consultancy services on their home country and international law, and that foreign law firms would only be able to second lawyers to Russia for a year, subject to possible extension.

This was the second offer made by Russia on legal services; the only positive change from the first has been to permit cross-border services, that is providing services from another country.

It was not clear whether a ban was enforceable.

Currently there is virtually no regulation of lawyers in Russia, let alone foreign lawyers.

Christian Wisskirchen, the Law Societys Europe policy executive, described the situation as chaotic.

The Society is lobbying the European Commission which represents European Union countries before the WTO to refuse to accept these restrictions.

The Commission has proved itself willing to take on issues like this before, such as when China initially proposed extremely restrictive commitments on legal services.

Mr Wisskirchen said solicitors were already disappointed by the first offer and that the second was clearly very unhelpful.

He added: Russia will gain nothing in terms of international growth.

They should look at this with enlightened self-interest.

As the current proposals stand, our firms would have to look at whether theyll be able to stay open, he said.

Neil Rose