Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 31, 1992 TAG: 9203310011
SECTION: NATIONAL/INTERNATIONAL PAGE: A-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
Lawyers.
"It's like being around at the time of creation. American lawyers working in Russia aren't only interpreting law but helping create a new legal system," said James Sitrick, chairman of the executive committee at Coudert Brothers, a New York City law firm that has an office in Moscow.
Eight U.S. law firms already have established offices in Moscow and that might be just the start, according to Peter Pettibone, legal committee chairman of the Trade and Economic Council, a New York City-based organization that works to ease trade with the Commonwealth of Independent States.
After three years in Moscow, the Baker and McKenzie law firm expanded from five to eight lawyers this year and is searching for a larger space, according to Alan Siegel, a partner at the New York City office.
"What we're seeing now is many people going to Russia to assess the situation, which is necessary before investments start," said Pettibone, a partner at Lord, Day and Lord, Barrett Smith law office in New York.
The demand for international lawyers arose in 1987 when President Mikhail Gorbachev first allowed foreign investors to own minority shares in joint ventures. Coudert Brothers opened the first American law office in 1988.
American lawyers in Russia are not practitioners of the law: "I don't know if it would suit a Russian client well to have an American lawyer representing him in court," said Ed Lieberman of the Cole Corette and Abrutyn law firm of Washington D.C. "It might offend Russian juries."
Instead, they work as legal advisers and consultants to Western companies that do business there.
The number of such businesses shows no sign of declining. McDonald's and Estee Lauder Cosmetics Co. are among those already there; Houston-based Marathon Oil recently won the rights to drill on Sakhalin Island. And others are preparing to move in.
Lieberman said lawyers help demystify Russia. Companies new to Russia need help with everything, including where to lease space and how to hire native English-speaking employees.
Lawyers for Coudert Brothers have supplemented their legal training with courses in Russian or Russian studies to facilitate their dealings.
Lawyers use the Federal Register to keep track of changes in U.S. government regulations and legislation, but there is no such thing in Russia. "We have to read six newspapers a day to get changes," said Lieberman. "You always have to be alert."
In addition to these professional demands, American lawyers in Russia also must cope with the well-known hardships of life there. This is a far cry from the world of Wall Street.
"The lifestyle is Spartan," said Pettibone. "The living spaces are fairly tight, and the offices are small. It requires diligence to get food and the like."
American lawyers posted in Moscow are paid about the same as they would be at major U.S. metropolitan firms - $80,000 to $100,000 for starting associates. Exchange rates are favorable, so the Americans can afford whatever food they want in Moscow's farmers' markets.
Still, "The best reason to work in Moscow is the professional experience if you want to stay in this area," said Pettibone. "You get to meet the decision-makers and other contacts. It's also exciting."
Sometimes - such as during last August's attempt to overthrow Gorbachev - there is too much excitement. But that incident pointed up the determination of American law firms to remain.
"Our people stayed there and just held tight," Sitrick said. "In the future, unless there is a Rasputin-like revolt, businesses will continue to be attracted, and there will be a role for lawyers."
by CNB