The Russian market, plagued by geopolitical tensions and economic sanctions, has watched another Am Law 100 firm head for the exit in a bear market.
By Brian Baxter | February 08, 2018 at 03:01 PM
Geopolitical tensions with the United States and other countries, economic sanctions and an often complicated local regulatory regime have led many large law firms to close up shop in Moscow. Enter Orrick, Herrington & Sutcliffe, the latest firm to put the Kremlin in its rearview.
A spokeswoman for the Am Law 100 firm confirmed to The American Lawyer the closure of its small Moscow office at the end of 2017. The move comes seven months after Herbert Smith Freehills hired Orrick partner Dmitry Gubarev in Moscow, where he headed Orrick’s Russian banking and finance practice. Olga Anisimova, a contract tax partner with Orrick in Moscow, has also recently left the firm, although others have relocated elsewhere.
Corporate partner Konstantin Kroll, who joined Orrick’s Moscow office in 2014 from Jones Day, has relocated to London, where he currently heads Orrick’s Russia desk. The firm also maintains a Russia-focused practice based in Washington, D.C., where private equity and M&A partner Olga Sirodoeva is now based.
Sirodoeva and Anisimova previously worked at Coudert Brothers, which dissolved in 2005, the same year that Orrick opened in Moscow after absorbing a large group of lawyersfrom the now-defunct firm in that city and London. The raid would later form the crux of a claim by Coudert’s bankrupt estate against Orrick. Sirodoeva and Anisimova were part of that group, as was former corporate partner John Sheedy, who left Orrick in January 2010 for Baker Botts. (Almost a year later, Sheedy was found dead in his Moscow apartment.)
Low energy prices have also continued to hit hard the Russian economy, lessening the need for Western lawyers to handle cross-border transactional work. In their stead, leading domestic firms, such as Egorov Puginsky Afanasiev & Partners, have moved to capture more market share.
Despite closing in Moscow, a move that comes nearly a year after Orrick revamped its Asia strategy following the departure of a large China capital markets and corporate teamto Morgan, Lewis & Bockius and almost three years after Orrick consolidated its offices in Germany, the firm is reallocating its resources elsewhere. An Orrick spokeswoman said that since 2013, the firm has grown from 237 lawyers across Africa and Europe to 302 today, making 38 lateral hires during that period.
Orrick opened offices in Abidjan, Ivory Coast, and Geneva, Switzerland, in 2014 and 2015, respectively, and set up shop in Houston the following year. The firm is currently in discussions to take on roughly 25 public finance lawyers in Texas from Andrews Kurth Kenyon, a move that comes more than a month after Orrick acquired 15-lawyer litigation boutique Morvillo in New York.