Solicitors cautiously welcome Russian plans to register foreign lawyers

NEW BARS: City firms still unable to represent public entities or to appear in court

Solicitors this week gave a guarded welcome to the introduction of legislation on the regulation of lawyers in Russia, after reassurance from senior Russian government officials that foreign lawyers working in the former Soviet Union will be protected.

On 1 July 2002, a new Act of Lawyers and the Bar came into force in Russia.

It creates individual bars in the 89 federation states, and one umbrella Russian bar association, which will replace the Ministry of Justice as regulator of the profession.

The deputy head of Prime Minister Vladimir Putin's administration - Dimitri Kozak - visited London this week with his head of staff, Andrey Yatskin.

In a meeting with Law Society Vice-President Peter Williamson, he said that foreign lawyers will be permitted to carry out all legal service activities in the same way as Russian advocates.

Foreign lawyers will register with Moscow's Ministry of Justice.

There are 12 English firms with offices in the city.

But Mr Kozak also indicated that foreign lawyers will be unable either to represent public entities in Russia or to appear in courts in Russia unless they work in conjunction with Russian advocates.

However, Russian proposals to the World Trade Organisation (WTO) - which form the basis of its negotiations to join the WTO - still state that foreign lawyers must only operate as sole practitioners, not as entities such as foreign branch offices.

Law Society officials said Mr Kozak was confident that the WTO issue could be resolved now that a more liberal regulatory regime had been established.

Mr Yatskin agreed to assist the Law Society to arrange meetings in Moscow with relevant officials to discuss this issue later this year, when Society officials will visit the Russian capital.

Offers from the Society to assist Russia's new bars to create regulatory and training frameworks were well received.

Law Society international policy executive Christian Wisskirchen said: 'Disregarding the WTO issue, the new regulation will enable foreign lawyers to work under a formal regulated regime, rather than in a void as at present, so we welcome it.'

Daniel Gogek, the former head of Lovells' Moscow office who stood down earlier this year to work on a project establishing a Moscow-based dispute resolution outfit, said: 'The acid test, once the reforms are introduced, is whether foreign lawyers will be able to continue giving advice on Russian legal issues.

By registering as foreign lawyers, there is a concern that the new regime may further limit our activities.'

The head of one City firm's Moscow office - who preferred not to be named - said: 'We do not see these regulations as a threat to our practice.

With other foreign lawyers, we are considering the regulations, and how best to respond to them.'

Jeremy Fleming