Magic circle firm Freshfields Bruckhaus Deringer today became the latest practice to announce it is closing its office in Moscow, as City firms scramble to leave Russia.

International firm Eversheds Sutherland declared it ‘will no longer have a presence in Russia’, while fellow international firm Gowling WLG said: ‘We are leaving Russia.’

Several major US-based firms have also decided to leave the Russian capital: Cleary Gottlieb Steen & Hamilton is to ‘temporarily’ close its Moscow office, Latham & Watkins will ‘wind down its presence in Russia’ and Morgan Lewis & Bockius said it will cease ‘all operations in Moscow’.

Squire Patton Boggs said that ‘it has become clear that it is no longer tenable for us to continue our operations in Russia and we have therefore decided to wind down our Moscow office’, while Akin Gump said it was ‘suspending operations in Moscow pending further developments’.

They all follow magic circle firm Linklaters and global firm Norton Rose Fulbright, who have also announced they are closing their offices in the Russian capital.

Freshfields said the decision to close its Moscow office was ‘not a decision we have taken lightly’, but added: ‘In light of the Russian government’s actions in Ukraine, and the clear stance we have taken on Russia-related work, we believe that this is the right course of action.’

Eversheds – which has offices in both Moscow and St Petersburg – said: ‘This decision has not been made lightly, and is not a reflection on our valued colleagues in those offices, but we will not continue to operate in Russia given its government’s invasion of Ukraine.’

Gowling said: ‘Our departure will be orderly as we seek to transition the business to our team in Moscow. This decision is grounded in our values and our deep sense of what is right. We will no longer accept new instructions from Russian clients, sanctioned or not, and we will end relationships with Russian clients in a manner that complies with our professional obligations.’

A spokesperson for Cleary Gottlieb said: ‘We have been exiting our engagements as counsel to Russian governmental and state-owned entities, in a manner consistent with our legal obligations to clients.’ They added: ‘We also will temporarily close our operations at our Moscow office pending further developments, while continuing to support our Moscow colleagues.’

Fellow US firm Debevoise & Plimpton said yesterday that it is ‘conducting a review of the status of our Moscow office in light of recent developments’ and ‘will not take on any new clients in Moscow’.

International firm CMS Cameron McKenna Nabarro Olswang has previously said its Moscow office is ‘under critical review’, while fellow international firm Kennedys last week said it decided to shut its office there last autumn as it was ‘uncomfortable with the direction the country was taking’.

Meanwhile, City firm Fieldfisher announced yesterday that it will ‘terminate all Russia-related instructions that facilitate the Russian military action in Ukraine’ and has ‘already ceased to act for a number of clients’, while listed firm DWF today said: ‘This conflict has caused us to enhance our process for determining who we represent and engage with, including the establishment of a risk and sanctions committee dedicated to this issue.’

A number of other leading firms have also decided to refuse new instructions from businesses and individuals linked to the Russian state, including international firm Ashurst and magic circle firm Clifford Chance – which has said it will not accept new work from Russian state-controlled entities or individuals linked to Russian president Vladimir Putin.

Litigation firm Stewarts also said it will not ‘act for or accept new instructions from Russian corporates, Russian residents or any corporate or individual anywhere in the world who is enabling or supporting the government of Russia’. The firm added that its ‘few’ existing Russia-connected cases ‘will now be brought to a close’.

Several major firms including Hogan Lovells and Dentons have said they have ended ongoing work or declined new clients in response to the ongoing conflict, while others including Clyde & Co, RPC and Withers said they are reviewing existing instructions.

The two other members of the magic circle have also made public statements: Allen & Overy said last week that it is ‘reviewing our Russia-related portfolio’, while Slaughter and May said it will ‘continue to review our position’.

 

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