Category: Uncategorized

  • Interview: Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

    Interview: Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

    Alexander Kotlyar is the Head of Legal & Compliance for Danfoss Russia, the Russian subsidiary of the Danfoss Group. Kotlyar joined Danfoss in 2012, after working as a Senior Lawyer with Schneider Electric for a little over a year. He began his career with Gruzovozoff LLC, where he moved up the ranks from a young in-house counsel to Deputy Head of Legal.

    Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

       

    Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

     CEELM: To start, please tell our readers a bit about yourself and your background leading up to your role with Danfoss Russia.

    A.K.: After graduating from the International Law faculty of the Moscow Institute of International Law and Economy named after A.S. Griboedov, I worked in different companies gradually ‘growing up’ from the role of a sole lawyer, to a senior lawyer, then to a Deputy Head of Legal Department. The support of daily activity in various areas of business gave me a solid foundation of the legal profession.

    Finally, in 2012 I applied for a position of Head of Legal Department in Danfoss Russia, the Russian subsidiary of the Danfoss Group, the world leader in the manufacturing of energy and heating solutions, refrigeration equipment, power electronics, and many other appliances well-known all over the world. Luckily I was chosen, and in 2013 I held the position of Head of Legal and Compliance Department, adding some interesting and valuable functions to my current role. 

     CEELM: You have worked as an in-house lawyer for over 14 years — much of which in senior/management positions. What best practices have you developed over the years in hiring and developing a strong in-house legal team?

    A.K.: I always instruct my subordinates to keep in mind, as they draft or propose any terms and conditions, that the time may come where they will be forced to defend those provisions to counter-parties or judges. It’s critical that they keep this in mind as they work, and to focus on being reasonable, fair, and customer-oriented. 

     CEELM: According to Danfoss’ website, the company “is recognised as a global trendsetter. We passionately push boundaries on results and reputation.” How would you say this attitude is reflected within your in-house legal team?

    A.K.: My team always tries to succeed in expectations. Even in our conservative area (I mean legal practice, in which it is rather complicated to set trends), together with daily routine we can take part in the elaboration of unexpected solutions assisting sales. For example, it was a significant relief for sales to use an electronic drafting of contracts – “just fill in the one-page table and click a button – and your contract is drafted.” 

     CEELM: When you need to outsource work to external counsel, what are the main criteria you use in picking the firms you work with?

    A.K.: Relying on my past experience I already have a number of external counsels and law firms achieving excellent results for a reasonable price. Certainly, I also follow our corporate policy, which singles out companies with already approbated services. 

     CEELM: What types of work do you generally prefer outsourcing to external counsel and what types of legal matters do you prefer to handle in-house? Why?

    A.K.: If possible, I prefer outsourcing IP rights lawsuits and mergers/acquisitions deals support: these do not require deep knowledge of interconnections inside the Group and the company, and providing counsel with necessary documents is quite sufficient – unlike the main activity, which requires keeping abreast of Group activities, and thus must be handled in-house. 

     CEELM: What would you say was the most complex project you worked on during your time at Danfoss?

    A.K.: Currently we are rendering legal support to a manufacturing plant construction in Dzerzhinsk, Nizhniy Novgorod Area. The complexity of this project lies in the necessity of suggesting a reasonable balance between the interests of all participants (many of which are major stakeholders in their areas) while strongly protecting our interests – but such legal support is giving a feeling of involvement in the creation process from scratch. 

    I would like to admit that every project is both interesting and complex in its own way. It is rather problematic to emphasize a specific one, because ordinary projects are not reflected in memory, whilst unique ones have their own aspects and particularities complicating a comparison. Notwithstanding this, we succeed in solving both ordinary and unique tasks equally.

     CEELM: Since you mentioned you prefer handling elements outside of IP and merger/acquisitions within your legal team, do you handle all aspects related to this new manufacturing plant in-house? 

    A.K.: As for legal support at present – yes. But I would leave open the possibility of putting some matters to a tender, particularly if these matters by their specific nature require the involvement of specialists with a narrow focus.

     CEELM: What types of legal work related to this project end up being most time-consuming?

    A.K.: I estimate obtaining internal consents and discussions with counter-parties related to the essential terms and conditions of contracts as most time-consuming..

     CEELM: From a regulatory stand-point, what would you identify the main recent or upcoming pieces of legislation that will impact your business?

    A.K.: We are aligned with both Russian legislation and foreign applicable laws such as FCPA and Bribery Act. Moreover, we are an ethical company and do the best to prevent possible unethical steps, which can be made by our employees, as well as the breach of our Code of Conduct by suppliers, contractors and service providers. Constantly changing Russian legislation gives many challenges and promises much more in the future, but we know how to deal with them. 

     CEELM: Since you mentioned constantly changing legislation in your jurisdiction, what are the main resources you use to keep track of them? Do you follow direct sources from relevant regulatory bodies, attend seminars, read up on legal academic journals, interact with regulatory bodies directly, use external counsel, etc? 

    A.K.: We do our best to use all sources you noted, but we prefer to attend seminars which open the floor to speeches of the regulatory bodies’ officers.

     CEELM: Looking back at your career, if you could go back to give one piece of advice to yourself fresh out of law school, what would it be?

    A.K.: If that young guy, full of his own impressions and expectations, listened to me, I would advise him to risk more in looking for the job of his dreams. Who knows, I might have held this position much earlier…

  • Interview: Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

    Interview: Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

    Alexander Kotlyar is the Head of Legal & Compliance for Danfoss Russia, the Russian subsidiary of the Danfoss Group. Kotlyar joined Danfoss in 2012, after working as a Senior Lawyer with Schneider Electric for a little over a year. He began his career with Gruzovozoff LLC, where he moved up the ranks from a young in-house counsel to Deputy Head of Legal.

    Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

       

    Alexander Kotlyar, Head of Legal & Compliance Department at Danfoss Russia

     CEELM: To start, please tell our readers a bit about yourself and your background leading up to your role with Danfoss Russia.

    A.K.: After graduating from the International Law faculty of the Moscow Institute of International Law and Economy named after A.S. Griboedov, I worked in different companies gradually ‘growing up’ from the role of a sole lawyer, to a senior lawyer, then to a Deputy Head of Legal Department. The support of daily activity in various areas of business gave me a solid foundation of the legal profession.

    Finally, in 2012 I applied for a position of Head of Legal Department in Danfoss Russia, the Russian subsidiary of the Danfoss Group, the world leader in the manufacturing of energy and heating solutions, refrigeration equipment, power electronics, and many other appliances well-known all over the world. Luckily I was chosen, and in 2013 I held the position of Head of Legal and Compliance Department, adding some interesting and valuable functions to my current role. 

     CEELM: You have worked as an in-house lawyer for over 14 years — much of which in senior/management positions. What best practices have you developed over the years in hiring and developing a strong in-house legal team?

    A.K.: I always instruct my subordinates to keep in mind, as they draft or propose any terms and conditions, that the time may come where they will be forced to defend those provisions to counter-parties or judges. It’s critical that they keep this in mind as they work, and to focus on being reasonable, fair, and customer-oriented. 

     CEELM: According to Danfoss’ website, the company “is recognised as a global trendsetter. We passionately push boundaries on results and reputation.” How would you say this attitude is reflected within your in-house legal team?

    A.K.: My team always tries to succeed in expectations. Even in our conservative area (I mean legal practice, in which it is rather complicated to set trends), together with daily routine we can take part in the elaboration of unexpected solutions assisting sales. For example, it was a significant relief for sales to use an electronic drafting of contracts – “just fill in the one-page table and click a button – and your contract is drafted.” 

     CEELM: When you need to outsource work to external counsel, what are the main criteria you use in picking the firms you work with?

    A.K.: Relying on my past experience I already have a number of external counsels and law firms achieving excellent results for a reasonable price. Certainly, I also follow our corporate policy, which singles out companies with already approbated services. 

     CEELM: What types of work do you generally prefer outsourcing to external counsel and what types of legal matters do you prefer to handle in-house? Why?

    A.K.: If possible, I prefer outsourcing IP rights lawsuits and mergers/acquisitions deals support: these do not require deep knowledge of interconnections inside the Group and the company, and providing counsel with necessary documents is quite sufficient – unlike the main activity, which requires keeping abreast of Group activities, and thus must be handled in-house. 

     CEELM: What would you say was the most complex project you worked on during your time at Danfoss?

    A.K.: Currently we are rendering legal support to a manufacturing plant construction in Dzerzhinsk, Nizhniy Novgorod Area. The complexity of this project lies in the necessity of suggesting a reasonable balance between the interests of all participants (many of which are major stakeholders in their areas) while strongly protecting our interests – but such legal support is giving a feeling of involvement in the creation process from scratch. 

    I would like to admit that every project is both interesting and complex in its own way. It is rather problematic to emphasize a specific one, because ordinary projects are not reflected in memory, whilst unique ones have their own aspects and particularities complicating a comparison. Notwithstanding this, we succeed in solving both ordinary and unique tasks equally.

     CEELM: Since you mentioned you prefer handling elements outside of IP and merger/acquisitions within your legal team, do you handle all aspects related to this new manufacturing plant in-house? 

    A.K.: As for legal support at present – yes. But I would leave open the possibility of putting some matters to a tender, particularly if these matters by their specific nature require the involvement of specialists with a narrow focus.

     CEELM: What types of legal work related to this project end up being most time-consuming?

    A.K.: I estimate obtaining internal consents and discussions with counter-parties related to the essential terms and conditions of contracts as most time-consuming..

     CEELM: From a regulatory stand-point, what would you identify the main recent or upcoming pieces of legislation that will impact your business?

    A.K.: We are aligned with both Russian legislation and foreign applicable laws such as FCPA and Bribery Act. Moreover, we are an ethical company and do the best to prevent possible unethical steps, which can be made by our employees, as well as the breach of our Code of Conduct by suppliers, contractors and service providers. Constantly changing Russian legislation gives many challenges and promises much more in the future, but we know how to deal with them. 

     CEELM: Since you mentioned constantly changing legislation in your jurisdiction, what are the main resources you use to keep track of them? Do you follow direct sources from relevant regulatory bodies, attend seminars, read up on legal academic journals, interact with regulatory bodies directly, use external counsel, etc? 

    A.K.: We do our best to use all sources you noted, but we prefer to attend seminars which open the floor to speeches of the regulatory bodies’ officers.

     CEELM: Looking back at your career, if you could go back to give one piece of advice to yourself fresh out of law school, what would it be?

    A.K.: If that young guy, full of his own impressions and expectations, listened to me, I would advise him to risk more in looking for the job of his dreams. Who knows, I might have held this position much earlier…

  • Interview: Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

    Interview: Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

    Dmitry Popov is the Vice President Legal & Compliance in Russia for ABB. His in-house career began in 2002 at Nutricia Advanced Medical Nutrition, where he worked as General Counsel. He then spent a little under a year with Renaissance Insurance as its General Counsel and Vice President. Following 3 years in private practice with Baker & McKenzie, he joined ABB in 2010.

    Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

       

    Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

     CEELM: To start, please tell us a bit about your career leading up to your current role with ABB.

    D.P.: My background is in fact a technical one with the first university I attended focusing on engineering. I did start studying for my law degree in parallel with the first one, which led to me graduating from both universities in 1997. My very first job in the legal world was in the Prosecutor’s Office but I found early on that it was much more interesting to work on civil cases rather than in criminal law, which I personally hate but which was almost mandatory for a career there. I then decided to leave the office and started working with a very small law firm. 

    I soon realized what a great asset my dual qualification represented. My technical background helped me understand technically complicated contracts, meaning I could support my clients much better. A telecommunications company, for example, is always going to be serviced better by a lawyer who understands not just the law but also the technology, and, importantly, the core business behind a contract. 

    Later on, I started my own small law practice in Nizhny Novgorod – a city where I was living at the time. I then came to the conclusion that all the interesting law work is really done in Moscow so I decided to relocate the city, where I worked for a large European company for 5 years. Within it, I started as an in-house counsel and moved my way up the ranks gradually to the position of General Counsel. After this experience I worked briefly for Renaissance Insurance after which I received an offer from Baker & McKenzie. 

    I have to say, what followed were probably the most exciting years of my professional life. When I joined the international firm, I expressed a strong wish to work on challenging/unusual cases, which have solutions neither in law, nor in court practice, and the firm offered a great platform to expose me to such projects.  

    In 2010, when the crisis hit firms, I realized that my dream of becoming a partner within 3 years of joining the firm might be a bit of a stretch, not because the firm was hurting necessarily, but because the capacity to assimilate more lawyers within the partnership ranks at the time did not look so evident. As a result, I accepted an offer from ABB to join the company – though I do not exclude the possibility of returning to the firm as a partner one day [laughs]. 

    I was also attracted by the idea of joining ABB because I knew they had very good Contracts and Corporate departments – but such important (for a large-industry company) areas as antitrust, regulatory (including customs and tax), IP, and litigation were not covered at the level which I believed sufficient. In light of my specialization with Baker, I thought those would be gaps I could definitely plug into and take upon myself the challenge of building up. In fact, looking back, I take pride in the fact that I built a small law firm with different practice areas within the company over the years, including a two-person litigation team that now is capable of handling large/complex litigations in-house. The same applies with other practice areas such as IP or antitrust, and even some M&A. Having said that, I must say how much I appreciate the very professional support from ABB headquarters. 

     CEELM: Do you see this approach as a trend in the market?

    D.P.: Indeed, I do. I think it makes sense for it to be a growing trend actually since it offers both the advantage of working with lawyers who know the business inside-out and it tends also to save money. Further, from my experience with Baker & McKenzie as well as from my communication with other consultants I understand that now in Russia we have a new generation of lawyers who are highly professional in their core law areas.  

     CEELM: You have worked both in-house and spent a considerable time in private practice — which do you prefer and why?

    D.P.: I would say they are two very different worlds but that I find both to be quite interesting. I would say that one of the main differences is that, as an external consultant, you are most often able to only give advice as to a solution. It is rare that an external lawyer would be allowed in the actual business side of implementing a solution, and it would require a long relationship to establish a strong level of trust before that could happen. I will say, it is also up to the attitude of the General Counsel to get involved if he/she wants to be a part of the actual solution implementation. By that I mean to say that I see two types of General Counsel: there is the “9 to 6 GC”, who really only acts as a communication tool between external counsel and the Board, and the “real GCs” who take advice and handle problems themselves.

     CEELM: When you used to work as a Senior Associate, what practice area(s) did you specialize in? Does that specialization help you directly in your current role?

    D.P.: The reality is that for a General Counsel to be effective, he/she needs to understand all the legal spheres related to his/her business from real estate to IP to antitrust, tax, etc. I personally used to specialize primarily in antitrust as well as corporate law but that does not mean that I never externalize this type of work. Even if I feel that the greater part of my team is “fluent” in antitrust issues, which is mandatory with all my lawyers, I still would sometimes, for example, invite external lawyers to sit down with my team and update us on some of the recent updates taking place in relevant legislation – and in Russia, there’s often quite a few of them. There is also the element of building up internal cases – a sort of  “externally-powered internal legitimacy” provided by the expert opinion of an outside consultant. 

     CEELM: Since we mentioned external counsel, when you do decide to outsource legal work, what are the main criteria you use in choosing law firms?

    D.P.: It really does depend considerably on the transaction. If I have a specific question I tend to know a lot of good lawyers – and I am referring here to specific individuals, irrespective of the colors of their brand – in Russia and would know who is best to ask for input. 

    If I had to pick one criteria, I value a law firm that “monitors” what we do on a regular basis as a business. For example, now that we are building a new plant, when we looked for external counsel for a specific real estate matter, it was important for us that the counsel knows already how we work and how we like things done – in terms of internal processes and such. This saves both time and money as we waste neither on answering question and clarifying what we need and how we need it, although “long term relations” is never the main criteria. 

    And if I have a complex project which may involve several areas of law, I choose between law firms who are strong in all those areas, and in this case the “best individual professional” approach does not play a main role.

     CEELM: What are your main sources of information about the capabilities of any specific law firm: Law firm websites, legal directories, network/referrals, direct contacts, their track records?

    D.P.: There are two main ways which I developed when I realized I was slowly becoming overly-dependent on a handful of lawyers. The first is attending legal seminars of law firms since it gives me a great opportunity to both update my knowledge and to asses that of the external counsel I am listening to (as well as assessing his business acuity). 

    The other can simply be summed up as “GCs network”. Granted, we interact considerably less than external counsel who get to meet regularly (even across each other at a table in a deal or in courts), but we do nevertheless. I’ve even exchanged best practices on how to handle various regulatory bodies with a direct competitor so exchanging impressions/referrals on external counsel is definitely a useful tool. Disclaimer: in full compliance with antitrust law, nothing to deal with the disclosure of the commercially sensitive information [laughing]

     CEELM: How does a regular day in the office look like for you? What takes up the most time of your day?

    D.P.: Two broad things end up taking up the greatest part of my day. The first is managing the legal department to make sure it runs smoothly and in an organized manner. This means managing 9 lawyers out of a full staff of 18 (we include in the legal team other technical staff such as archives or contract managers), their daily tasks and long term projects, their interactions with other business units, and so on. It also means working constantly to streamline processes which involve the legal team so as to eliminate unnecessary red-tape to ensure the legal team operates as a facilitator, rather than a “sales prevention team” for the overall business. 

    The second aspect is hard to describe more specifically than simply calling it “general business troubleshooting.” Things always come up and reacting to them on the spot means distractions from other projects and a lot of time invested in them.

     CEELM: On a lighter note, what is your favorite item in your office and why?

    D.P.: I have a small model car – a Jaguar XK – which is my favorite car in the world. Obviously, I hope to one day own the car itself, not just a model of it. My team members’ favorite item, however, is my table hockey. We actually have a legal department tournament twice a year. The prize is obviously something small, such as show tickets, but they all love it and it is an excellent team builder.

  • Interview: Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

    Interview: Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

    Dmitry Popov is the Vice President Legal & Compliance in Russia for ABB. His in-house career began in 2002 at Nutricia Advanced Medical Nutrition, where he worked as General Counsel. He then spent a little under a year with Renaissance Insurance as its General Counsel and Vice President. Following 3 years in private practice with Baker & McKenzie, he joined ABB in 2010.

    Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

       

    Dmitry Popov, Vice President Legal & Compliance for Russia at ABB

     CEELM: To start, please tell us a bit about your career leading up to your current role with ABB.

    D.P.: My background is in fact a technical one with the first university I attended focusing on engineering. I did start studying for my law degree in parallel with the first one, which led to me graduating from both universities in 1997. My very first job in the legal world was in the Prosecutor’s Office but I found early on that it was much more interesting to work on civil cases rather than in criminal law, which I personally hate but which was almost mandatory for a career there. I then decided to leave the office and started working with a very small law firm. 

    I soon realized what a great asset my dual qualification represented. My technical background helped me understand technically complicated contracts, meaning I could support my clients much better. A telecommunications company, for example, is always going to be serviced better by a lawyer who understands not just the law but also the technology, and, importantly, the core business behind a contract. 

    Later on, I started my own small law practice in Nizhny Novgorod – a city where I was living at the time. I then came to the conclusion that all the interesting law work is really done in Moscow so I decided to relocate the city, where I worked for a large European company for 5 years. Within it, I started as an in-house counsel and moved my way up the ranks gradually to the position of General Counsel. After this experience I worked briefly for Renaissance Insurance after which I received an offer from Baker & McKenzie. 

    I have to say, what followed were probably the most exciting years of my professional life. When I joined the international firm, I expressed a strong wish to work on challenging/unusual cases, which have solutions neither in law, nor in court practice, and the firm offered a great platform to expose me to such projects.  

    In 2010, when the crisis hit firms, I realized that my dream of becoming a partner within 3 years of joining the firm might be a bit of a stretch, not because the firm was hurting necessarily, but because the capacity to assimilate more lawyers within the partnership ranks at the time did not look so evident. As a result, I accepted an offer from ABB to join the company – though I do not exclude the possibility of returning to the firm as a partner one day [laughs]. 

    I was also attracted by the idea of joining ABB because I knew they had very good Contracts and Corporate departments – but such important (for a large-industry company) areas as antitrust, regulatory (including customs and tax), IP, and litigation were not covered at the level which I believed sufficient. In light of my specialization with Baker, I thought those would be gaps I could definitely plug into and take upon myself the challenge of building up. In fact, looking back, I take pride in the fact that I built a small law firm with different practice areas within the company over the years, including a two-person litigation team that now is capable of handling large/complex litigations in-house. The same applies with other practice areas such as IP or antitrust, and even some M&A. Having said that, I must say how much I appreciate the very professional support from ABB headquarters. 

     CEELM: Do you see this approach as a trend in the market?

    D.P.: Indeed, I do. I think it makes sense for it to be a growing trend actually since it offers both the advantage of working with lawyers who know the business inside-out and it tends also to save money. Further, from my experience with Baker & McKenzie as well as from my communication with other consultants I understand that now in Russia we have a new generation of lawyers who are highly professional in their core law areas.  

     CEELM: You have worked both in-house and spent a considerable time in private practice — which do you prefer and why?

    D.P.: I would say they are two very different worlds but that I find both to be quite interesting. I would say that one of the main differences is that, as an external consultant, you are most often able to only give advice as to a solution. It is rare that an external lawyer would be allowed in the actual business side of implementing a solution, and it would require a long relationship to establish a strong level of trust before that could happen. I will say, it is also up to the attitude of the General Counsel to get involved if he/she wants to be a part of the actual solution implementation. By that I mean to say that I see two types of General Counsel: there is the “9 to 6 GC”, who really only acts as a communication tool between external counsel and the Board, and the “real GCs” who take advice and handle problems themselves.

     CEELM: When you used to work as a Senior Associate, what practice area(s) did you specialize in? Does that specialization help you directly in your current role?

    D.P.: The reality is that for a General Counsel to be effective, he/she needs to understand all the legal spheres related to his/her business from real estate to IP to antitrust, tax, etc. I personally used to specialize primarily in antitrust as well as corporate law but that does not mean that I never externalize this type of work. Even if I feel that the greater part of my team is “fluent” in antitrust issues, which is mandatory with all my lawyers, I still would sometimes, for example, invite external lawyers to sit down with my team and update us on some of the recent updates taking place in relevant legislation – and in Russia, there’s often quite a few of them. There is also the element of building up internal cases – a sort of  “externally-powered internal legitimacy” provided by the expert opinion of an outside consultant. 

     CEELM: Since we mentioned external counsel, when you do decide to outsource legal work, what are the main criteria you use in choosing law firms?

    D.P.: It really does depend considerably on the transaction. If I have a specific question I tend to know a lot of good lawyers – and I am referring here to specific individuals, irrespective of the colors of their brand – in Russia and would know who is best to ask for input. 

    If I had to pick one criteria, I value a law firm that “monitors” what we do on a regular basis as a business. For example, now that we are building a new plant, when we looked for external counsel for a specific real estate matter, it was important for us that the counsel knows already how we work and how we like things done – in terms of internal processes and such. This saves both time and money as we waste neither on answering question and clarifying what we need and how we need it, although “long term relations” is never the main criteria. 

    And if I have a complex project which may involve several areas of law, I choose between law firms who are strong in all those areas, and in this case the “best individual professional” approach does not play a main role.

     CEELM: What are your main sources of information about the capabilities of any specific law firm: Law firm websites, legal directories, network/referrals, direct contacts, their track records?

    D.P.: There are two main ways which I developed when I realized I was slowly becoming overly-dependent on a handful of lawyers. The first is attending legal seminars of law firms since it gives me a great opportunity to both update my knowledge and to asses that of the external counsel I am listening to (as well as assessing his business acuity). 

    The other can simply be summed up as “GCs network”. Granted, we interact considerably less than external counsel who get to meet regularly (even across each other at a table in a deal or in courts), but we do nevertheless. I’ve even exchanged best practices on how to handle various regulatory bodies with a direct competitor so exchanging impressions/referrals on external counsel is definitely a useful tool. Disclaimer: in full compliance with antitrust law, nothing to deal with the disclosure of the commercially sensitive information [laughing]

     CEELM: How does a regular day in the office look like for you? What takes up the most time of your day?

    D.P.: Two broad things end up taking up the greatest part of my day. The first is managing the legal department to make sure it runs smoothly and in an organized manner. This means managing 9 lawyers out of a full staff of 18 (we include in the legal team other technical staff such as archives or contract managers), their daily tasks and long term projects, their interactions with other business units, and so on. It also means working constantly to streamline processes which involve the legal team so as to eliminate unnecessary red-tape to ensure the legal team operates as a facilitator, rather than a “sales prevention team” for the overall business. 

    The second aspect is hard to describe more specifically than simply calling it “general business troubleshooting.” Things always come up and reacting to them on the spot means distractions from other projects and a lot of time invested in them.

     CEELM: On a lighter note, what is your favorite item in your office and why?

    D.P.: I have a small model car – a Jaguar XK – which is my favorite car in the world. Obviously, I hope to one day own the car itself, not just a model of it. My team members’ favorite item, however, is my table hockey. We actually have a legal department tournament twice a year. The prize is obviously something small, such as show tickets, but they all love it and it is an excellent team builder.

  • Interview: Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

    Interview: Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

    Anna Gritsevskaya is the Legal Director for Russia at PPF Life Insurance (formerly Generali PPF). She has spent over 11 years in the Insurance sector, holding Head of Legal and Compliance positions in a number of foreign-owned insurance companies in Russia including Allianz, Aviva, Fortis, and Generali PPF.

    Anna-Gritsevskaya.jpg

       

    Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

     CEELM: To start, please tell us a bit about yourself and your career leading up to your role with PPF Life Insurance.

    A.G.: I was born in Moscow and graduated from the Moscow State University Law Department. To tell you the truth, I never wanted to work as a lawyer and saw myself as a future law scholar. I was strongly encouraged by my professors to devote myself to legal science. However, the times were rough in Russia in early 90s, so I started working in a corporate rather than academic environment. Completely by accident I joined a Russian insurance company in 1995 and have been in the insurance industry ever since. 

     CEELM: Your current role is that of Legal Director for Russia. In your own words, how would you define the role of a Legal Director/General Counsel?

    A.G.: Perhaps, my role is best described by the name of my position [smiles]. I do counseling – I advise the company’s management and the employees on most complicated and tricky legal issues. In other words, I am responsible for the peace of mind of the management. But I am also a manager myself and, as such, I have to organize the work of my department and supervise many insurance matters including product design, claims handling, and litigation. Corporate, employment, and various other general legal issues come on top.  

     CEELM: You have been working in the Finance sector for over 11 years in senior in-house roles. What excites you about the industry the most?

    A.G.: As I said, it was by accident that I started working in insurance. But I have never regretted it.  Insurance is a service industry, where the client is always right. As a result, I have the challenging task of keeping the balance between the need to satisfy the client to the maximum possible extent and the need to protect the interests of my company. At the same time, the legal framework for insurance in Russia is rather general, so insurance lawyers often have to make decisions with little or no guidance at all. It means responsibility but it also drives me a lot!

     CEELM: What does a typical day look like for you as the Head of Legal of an insurance business in Russia? What takes up the most of your time in the office?

    A.G.: I usually start with accessing the scope of work, defining priorities, and distributing assignments among the team members. As the day unfolds, I supervise the performance of tasks by my staff, consult with my colleagues from other departments to learn their needs for legal advice, prepare reports for the management team, and deal with urgent matters. A fair share of my time is taken by meetings on many different topics, brainstorming sessions, project management, or review meetings where I am often required to give legal advice on the spot. You will not believe how varied the topics of required legal advice are sometimes [smiles]! 

     CEELM: According to urban myth, unlike lawyers in private practice, in-house counsel wrap up at 5 pm on the dot. How accurate is this impression?

    A.G.: I believe this is not a matter of where the person works. It depends on the person’s ability to manage his or her time properly. My day is always planned ahead. I try to spend my working hours on work-related matters only and encourage and train my staff to organize their time in the same way.  I do not believe in long hours at the office desk. Certainly, there may be cases when it is necessary but then it is a crisis and everybody should mobilize.

     CEELM: How is your in-house team designed? Do you specialize your individual lawyers on specific areas or are they all generalists? 

    A.G.: I have 8 people on my team. Each of them has his/her own area of main responsibility but I try to give them tasks beyond their usual routine. I strongly believe that lawyers must have a wider vision – a sense of law if you want. I think one cannot become a good lawyer without working on different tasks and always learning something new. As a result, I try giving assignments to my staff beyond their comfort zones to develop and to train them. To be fair to the members of my team they understand this and look for new challenges themselves. 

     CEELM: If you need to outsource legal work, what criteria do you use in choosing your external counsel?

    A.G.: I work in a company that is a member of an international group of companies. The group has preferred legal advisors that it usually uses in various countries. In case I pick external counsels I expect them to be very responsive, practical, straight-to-the-point and … brief!  I am prepared to accept a higher cost but it must present real value for money.

     CEELM: There is a great deal of hype in Russia at the moment over the various sanctions imposed on the market. Do they affect your business in any way? If yes, how?

    A.G.: As a matter of policy we do not comment on political topics. However, I need to correct you in a sense that no sanctions have been imposed on the Russian insurance industry. All our reserves are invested in Russia and we meet our obligations towards regulators and our clients in full.

     CEELM: On a lighter note, what is your favorite thing to do after a long day at the office?

    A.G.: First of all, I try to not make my day in the office longer than I need to. What is my pastime? I have been practicing Yoga for many years. Together with regular sessions in the gym it helps tremendously to free my brain and to strengthen my spirit, to have a clear mind, to relax. My son has grown up so I have more time for myself. I like traveling, exploring new hidden places especially in Europe. I read a lot of books in English and even take English lessons to practice my spoken language (we usually speak Russian in the office). I also have two sphinx cats – they amuse me a lot! 

  • Interview: Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

    Interview: Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

    Anna Gritsevskaya is the Legal Director for Russia at PPF Life Insurance (formerly Generali PPF). She has spent over 11 years in the Insurance sector, holding Head of Legal and Compliance positions in a number of foreign-owned insurance companies in Russia including Allianz, Aviva, Fortis, and Generali PPF.

    Anna-Gritsevskaya.jpg

       

    Anna Gritsevskaya, Legal Director Russia at PPF Life Insurance

     CEELM: To start, please tell us a bit about yourself and your career leading up to your role with PPF Life Insurance.

    A.G.: I was born in Moscow and graduated from the Moscow State University Law Department. To tell you the truth, I never wanted to work as a lawyer and saw myself as a future law scholar. I was strongly encouraged by my professors to devote myself to legal science. However, the times were rough in Russia in early 90s, so I started working in a corporate rather than academic environment. Completely by accident I joined a Russian insurance company in 1995 and have been in the insurance industry ever since. 

     CEELM: Your current role is that of Legal Director for Russia. In your own words, how would you define the role of a Legal Director/General Counsel?

    A.G.: Perhaps, my role is best described by the name of my position [smiles]. I do counseling – I advise the company’s management and the employees on most complicated and tricky legal issues. In other words, I am responsible for the peace of mind of the management. But I am also a manager myself and, as such, I have to organize the work of my department and supervise many insurance matters including product design, claims handling, and litigation. Corporate, employment, and various other general legal issues come on top.  

     CEELM: You have been working in the Finance sector for over 11 years in senior in-house roles. What excites you about the industry the most?

    A.G.: As I said, it was by accident that I started working in insurance. But I have never regretted it.  Insurance is a service industry, where the client is always right. As a result, I have the challenging task of keeping the balance between the need to satisfy the client to the maximum possible extent and the need to protect the interests of my company. At the same time, the legal framework for insurance in Russia is rather general, so insurance lawyers often have to make decisions with little or no guidance at all. It means responsibility but it also drives me a lot!

     CEELM: What does a typical day look like for you as the Head of Legal of an insurance business in Russia? What takes up the most of your time in the office?

    A.G.: I usually start with accessing the scope of work, defining priorities, and distributing assignments among the team members. As the day unfolds, I supervise the performance of tasks by my staff, consult with my colleagues from other departments to learn their needs for legal advice, prepare reports for the management team, and deal with urgent matters. A fair share of my time is taken by meetings on many different topics, brainstorming sessions, project management, or review meetings where I am often required to give legal advice on the spot. You will not believe how varied the topics of required legal advice are sometimes [smiles]! 

     CEELM: According to urban myth, unlike lawyers in private practice, in-house counsel wrap up at 5 pm on the dot. How accurate is this impression?

    A.G.: I believe this is not a matter of where the person works. It depends on the person’s ability to manage his or her time properly. My day is always planned ahead. I try to spend my working hours on work-related matters only and encourage and train my staff to organize their time in the same way.  I do not believe in long hours at the office desk. Certainly, there may be cases when it is necessary but then it is a crisis and everybody should mobilize.

     CEELM: How is your in-house team designed? Do you specialize your individual lawyers on specific areas or are they all generalists? 

    A.G.: I have 8 people on my team. Each of them has his/her own area of main responsibility but I try to give them tasks beyond their usual routine. I strongly believe that lawyers must have a wider vision – a sense of law if you want. I think one cannot become a good lawyer without working on different tasks and always learning something new. As a result, I try giving assignments to my staff beyond their comfort zones to develop and to train them. To be fair to the members of my team they understand this and look for new challenges themselves. 

     CEELM: If you need to outsource legal work, what criteria do you use in choosing your external counsel?

    A.G.: I work in a company that is a member of an international group of companies. The group has preferred legal advisors that it usually uses in various countries. In case I pick external counsels I expect them to be very responsive, practical, straight-to-the-point and … brief!  I am prepared to accept a higher cost but it must present real value for money.

     CEELM: There is a great deal of hype in Russia at the moment over the various sanctions imposed on the market. Do they affect your business in any way? If yes, how?

    A.G.: As a matter of policy we do not comment on political topics. However, I need to correct you in a sense that no sanctions have been imposed on the Russian insurance industry. All our reserves are invested in Russia and we meet our obligations towards regulators and our clients in full.

     CEELM: On a lighter note, what is your favorite thing to do after a long day at the office?

    A.G.: First of all, I try to not make my day in the office longer than I need to. What is my pastime? I have been practicing Yoga for many years. Together with regular sessions in the gym it helps tremendously to free my brain and to strengthen my spirit, to have a clear mind, to relax. My son has grown up so I have more time for myself. I like traveling, exploring new hidden places especially in Europe. I read a lot of books in English and even take English lessons to practice my spoken language (we usually speak Russian in the office). I also have two sphinx cats – they amuse me a lot! 

  • Behind the Deal: LEGO’s New Plant in Nyiregyhaza

    Behind the Deal: LEGO’s New Plant in Nyiregyhaza

    On March 25, 2014, in the presence of the Hungarian Prime Minister, the newly rebuilt LEGO plant in Nyiregyhaza, Hungary, had its grand opening. The new complex, located on a 100-hectare site, created 250 new jobs, increasing LEGO’s headcount to 1,500 in Hungary, and was built in just under 12 months – a record in Hungarian construction for a project of that magnitude. The head of the legal team advising LEGO on the EUR 354 million project to expand the plant in Nyiregyhaza was Eszter Kamocsay-Berta, then with Gide Loyrette Nouel in Budapest, who was happy to reflect on the deal and its main challenges.

    eszter-berta.jpg

       

    Eszter Kamocsay-Berta

    Kamocsay-Berta started by pointing out that LEGO’s presence in Hungary actually dates back several years. Until 2008, the plant in Nyiregyhaza had been operated by Flextronics, which was producing toys for the Danish company under contract. That year, Kamocsay-Berta pointed out, “LEGO decided to take over the full operation, assets, and staff, as it is always much easier to supervise standards of productions of an in-house plant rather than a contractor.” Kamocsay-Berta advised LEGO on the 2008 acquisition of the plant from Flextronics, and in 2011 LEGO returned to her for assistance in rebuilding the plant. “As a Danish company, in line with most Nordic Countries’ culture,” she recalls, “LEGO valued the trust and relationship built with specific counsel rather than the law firm brand.”

    Kamocsay-Berta praised the assistance provided on the 2011project by colleague Gabriella Galik, who “had a critical operational/executive role throughout the deal.” Galik wasn’t the only lawyer putting in hours, of course, and Kamocsay-Berta noted that, “the team fluctuated considerably throughout the various stages of the project from 4-5 lawyers working on it at certain points up to 10-15 in more intensive periods.”

    The deal also involved a lot of cross-practice coordination — “as is to be expected in such a large scale greenfield project,” Kamocsay-Berta said. Projects and Infrastructure lawyers were needed, as were Real Estate lawyers, Energy lawyers, and lawyers to deal with general Ccorporate matters. The project was fully self-funded by LEGO, Kamocsay-Berta pointed out, thus finance lawyers played a minimal role — though a project fund manager was kept on-board to satisfy statutory requirements for a project of that size. Even now that the plant is finalized and the opening ceremonies have taken place, there is still a lot of “post-build” legal work that is keeping the legal team busy.

    When asked about the particular challenges she faced while advising on the deal, the first examples that came to Kamocsay-Berta’s mind were practical in nature. “For example, the 100-hectare area where the plant was to be built was incredibly segmented – it had over 100 land owners. All of them had to be reached out to, negotiated with, and draft individualized contracts for, all of which leading up to a lot of contract work and quite a logistical challenge to coordinate,” she recalled.

    She also points out specific characteristics arising from LEGO’s preferences, which at the time were rather particular: “Most companies, for a project of this magnitude, would prefer to identify one construction partner and contract them as relevant. LEGO’s approach was different. It segmented the different aspects into five main areas of specialization and aimed at identifying the best possible specialists in each of them. This meant coordinating with not only one general contractor but selecting, signing up, and coordinating/following-up with at least five of them.” She also added that “it was fascinating to see this huge global company that specializes in toy manufacturing, managing something completely different – actual construction of a manufacturing facility.”

    The really interesting challenges, however, stemmed not from the scale and complexity of the deal but from the nature of the stakeholders involved. In many ways, Kamocsay-Berta described the role of the legal advisors on the ground as that of a “bridge between stakeholders with considrably different cultures.” She elaborated: “Danish culture, again, like most Nordic countries, tends to be heavily focused on consensus building by involving all possible stakeholders in the dialogue to ensure that everyone is ‘onboard’ with what is going on. While this is great for the morale of those stakeholders – and, personally, I believe it tends to generate better results in general – it did, at times, frustrate local partners because of its well-considered nature for something that mattered far less in their minds,” she explained. Accordingly, the legal team was expected to approach the project as more than just another lawyers’ assignment: “It wasn’t about purely managing legal risk. We had to act like real business partners who did not focus on the ‘why we shouldn’t’ but on the ‘how can we get this done?’. In the end, this approach was highly appreciated by the client.”

    Gabriella Galik

       

    Gabriella Galik 

    The Danish culture, famous for its emphasis on clean hands, also raised challenges when, as Kamocsay-Berta put it, “that drive for a high standard of integrity was faced with the realities given.” She explained that, “what you need to understand is that this project was going to add a lot of jobs in an otherwise rather under-developed part of the country, and it wasn’t even just about the 1,500 jobs since it also created other ‘side industries’, it generated work for contractors, and developed the lo- cal infrastructure. As a result, it was very much welcome by the Government – both central and local – but the corporate culture of LEGO dictated that it would actively distance itself from anything that might remotely affect its neutrality towards political institutions.” It was, in Kamocsay-Berta’s view, the need to navigate between these two drives that required her to focus heavily on the “building bridges” aspect of the project.

    In retrospect, Kamocsay-Berta explained, working on this kind of a project showed her first hand how “different cultures can radically shape the direction of a project – especially an eye opener since cultural differences is such a broad and vague concept that it only really becomes visible when you get to contrast two cultures in proximity to each other.” She added that her main takeaway was one that made her feel proud for the Hungarian people: “It was great to see how resourceful and inventive the Hungarian culture can be – it definitely helped massively in working in this project. Witnessing it first hand makes me be quite optimistic with regards to the country’s ability to welcome and accommodate future foreign investments of this magnitude.”

    As CEE Legal Matters reported on June 13, 2014, Eszter Kamocsay-Berta and several colleagues have recently left the Gide Budapest office. Both she and Gabriella Galik are now partners at the newly-formed KCG Partners Law Firm.

  • International Law Firms’ Future in CEE

    International Law Firms’ Future in CEE

    News that an international law firm has closed a CEE office is becoming routine. In the first six months of 2014 alone, Gide Loyrette Nouel and White & Case closed their offices in Bucharest, and Norton Rose Fulbright and Hogan Lovells closed theirs in Prague. With this as a background, CEE Legal Matters invited partners from four international law firms in London to a roundtable discussion about the future of the region for international firms.

    Denise Hamer

       

    Denise Hamer is a Partner with Richards Kibbe & Orbe, concentrating in the areas of financial restructuring, distressed debt, asset disposition/acquisition, and special situations, with a particular focus on developing markets. She has, in her diverse career, held senior positions with Citigroup, Societe Generale, Weil Gotshal and Manges, White & Case, Arthur Andersen, Schoenherr, and the Austrian bank portfolio company of Cerberus Capital Management, BAWAG P.S.K. She has lived and worked in CEE and CIS for many years. Richards Kibbe & Orbe has offices in New York, Washington D.C., and London.

    Matthew Jones

       

    Matthew Jones is a Partner with Taylor Wessing’s Construction and Engineering team. He advises primarily on aspects of construction legal matters, particularly procurement, drafting and negotiation of building and engineering contracts, consultancy appointments, and related construction agreements. His clients and work are global, with projects in the UK and also from time to time in other jurisdictions, including Australia, Italy, Romania, Norway, Egypt, Turkey, Libya and Nigeria. Taylor Wessing has offices around the world, and has been in CEE since its 2012 merger with Vienna-headquartered ENWC Attorneys at Law.

    Phillip Abbot

       

    Philip Abbott is a Banking and Finance Partner at Field Fisher & Waterhouse, with a strong focus on funds finance, real estate finance, and restructuring, as well as acquisition finance, receivables finance, and lending in the TMT and life sciences sectors. He has a significant focus on emerging markets, in particular Libya, Turkey, and the Middle East. Field Fisher & Waterhouse has 9 offices around the world.

    Simon Cox

       

    Simon Cox is a Partner with McGuire Woods, where he advises on UK and international M&A, securities, private equity, privatization and joint venture projects, across a wide range of sectors (including energy & utilities, financial institutions, automotive, real estate, brewing & distilling, shipping, hotels and natural resources). In his 25 year legal career, Cox has worked on transactions in the UK, Central and Eastern Europe (principally in Bulgaria, Romania, Czech Republic, Ukraine, Russia, and Turkey), and in the Far East. McGuire Woods has offices across the United States, as well as London and Brussels.

    Philip Abbott, Denise Hamer, Matthew Jones, and Simon Cox convened at the Richards Kibbe & Orbe offices in London on Tuesday, April 29, 2014, for a wide-ranging discussion on the markets of CEE, prospectives for growth, and the ability of local firms to satisfy the needs of international clients. What follows is a short excerpt of a much longer conversation.

    CEELM: You all operate regularly with clients from across CEE, despite not having offices on the ground. So your clients are sitting in CEE, investing into the UK or on an international basis. How are you pitching your know-how, if you don’t have a local office?

    Philip Abbott: We have the know-how, so far as the CIS is concerned. We have a legal team of Russian lawyers, based in London. They’re not practicing Russian law from London, but they are Russian, and therefore have Russian clients and clients from other jurisdictions in the region. So, what we’re not doing is trying to sell local law services. We’re advising the local client base on English law. Then if a client in the region is investing in, say, France, we’ll generally work with either our local offices or with a partner firm there.

    Matthew Jones: We have offices in Austria, Poland, Slovakia, Hungary, Czech Republic and Ukraine. We don’t have a presence in Russia but we don’t see that as a gap necessarily. We have staff across the office network who can service our Russian work.

    Simon Cox: You have to tailor your offering to meet the client’s needs. You can’t say “we can’t do work locally, but we could find a firm that you’ve maybe never heard of that’s a local firm, not an international firm.” I’m looking for clients coming out of these countries and expanding internationally. For example, Turks looking at setting up in the UK, or Russians buying stock exchange funds, or a stock exchange listing. For that we need some Russian experience, and we need Russian language skills. We don’t need the office on the ground.

    Denise Hamer: At my former firm, we had a Ukrainian office, but not a Russian office. And it was a big debate, because there’s obviously a lot of synergy between Russia and Ukraine, but on the other hand everybody understands that investing in Russia is a whole different thing all together. It’s commitment, and it’s a huge financial resource commitment. You need some very strong anchor clients before you do that.

    Simon Cox: The bigger firms focus on a couple of places, and they probably have a Moscow office. You have the smaller regional firms and the newer regional firms who are in some ways spin-offs with the experience of international law firms. They can offer a cohesive regional offering at a much better price. There may be one or two big international firms who seem to have the government work, or they’ve got the high-end bonds work or similar, working in some of the CEE markets. But as a model, I don’t see it as having a long-term future.  

    Denise Hamer: In Bucharest, for instance, the local champions have really grown very strong. There’s huge fee pressure, and outside of the UK and CEE in particular there’s also competition, not only from the local champions, but also from the Big Four, who have captive legal practices, and are doing the low-to-medium end work. So, it’s not a sustainable structure to have as many resources being spread across that large a region. Most of these firms opened up local offices on the back of privatization work or M&A work, big projects, and they just are not continuing. But the region’s not done. From the whole M&A finance side it’s now rolling over to distressed debt and restructuring. So, there’s definitely a demand for legal services in the region, just that it’s changed and they’re not necessarily enough to sustain offices on the ground in each location. In addition, local firms are more capable of handling the more sophisticated matters than they used to be in the past. They’ve hired laterally. They’ve hired Anglo-Saxon lawyers. If you look at the local firms, they also have very sophisticated local lawyers, who are politically connected.

    Matthew Jones: Many local lawyers have trained at the international firms. They’ve been on the ground with an international local office of an international law firm. So many will have had quality background and training. Some should then be capable of handling international deals. There has also been a greater focus on pricing in recent years and local firms may have greater ability to absorb fee pressures than say Magic Circle or large international firms.

    Simon Cox: I think a couple of questions that international firms are asking increasingly often is “do you need to practice local law, or do you want to practice English law only?” You can see a couple of examples of international firms, in Turkey for example, who initially have said that they will only practice English law – and then changed tack. The question is, what services are you going to provide? And I think that most firms in London are deciding that they are not going to do everything. You need to be very good at what you say you’re going to do, and not average. So, apart from probably four or five firms, most firms are no longer ‘full-service’ in London. In that case how can you be full-service internationally? Perhaps that’s the reason for withdrawing. They can’t support having an office that can’t do half the things that they want to do there.

    Denise Hamer: The worst thing you can have is mediocre or inconsistent services across the jurisdiction; it sullies the entire brand. Another thing is that when you have a full-service firm with such a diverse client base, you’re regularly constantly conflicted on matters as well.

    Philip Abbott: I would agree with that, and also endorse the need to be able to select the best lawyers that you can to work with you in a particular jurisdiction. A client won’t necessarily stay with the same firm all the time. It depends on the type of work that they’re doing. I’ve found in the last couple of years bank clients being much more selective about who they want to act for them internationally. They know the London market, they’ve obviously gone out and done due diligence on the firms that they plan to use and the individuals of those firms that they’re prepared to use. In other jurisdictions, sometimes the clients tell me who they’re going to use. At my previous firm, there were a couple of situations where I used other offices of other international firms because that’s what the client required me to do. I think that clients are much more sophisticated now.

    Simon Cox: You can also have a situation where a client refuses to work with Office X, because they have had a bad experience in the past. That can undermine the wider offering as well.

    Matthew Jones: Coming back full circle to your proposition whether CEE is no longer valuable for international law firms, I don’t think that’s necessarily the case. The market has been re-shaping itself to be fit for purpose and there have been some international law firm exits in this time. Law firms have traditionally had a lag between adapting market conditions and right size so I see any re-shaping as evolution with the economic cycle. For those law firms that remain, whether international or local, there should be reasons for hope, with signs that some EU countries are emerging from the economic crisis. And If you look for instance at macroeconomics, I know people that think the UK is leading the developed world in terms of a recovery. But if you look there are other parts of Central and Eastern Europe which are doing well – the GDP economic growth is the say the same in Poland and Hungary as it is in the UK presently.  But I don’t think people would necessary see that. 

    Simon Cox: I treat Poland differently from the rest of CEE, like Russia. I think if you’ve ever been to Central Europe as a big firm, you’ll be in Warsaw. And there are some very well-known people and  international firms in Warsaw that are doing quite well. But I think if you look at Prague or Bucharest or the former Yugoslavia Republics, or all the different regions, I think the war for talent is the issue. International law firms cannot go to set up an office in CEE and throw money at it. It has to earn its own money. And to attract good partners or stars, you have to pay top bar, and you can’t pay top bar if you’re not earning enough to pay them. Part of this is simply that the home offices are much more focused on the particular reasons for opening a foreign office. They’re saying: “We want a good year. We want to take some money out of our practices this year. We want to sort of refill our coffers after having funded another office opening.” I think office openings are – you see far fewer these days.

    Denise Hamer: What’s happening in Turkey, obviously there’s been a huge boom there, but you guys are quite expert on Turkey. Do you see this as a bubble that’s going to implode very shortly?

    Philip Abbott: It hasn’t imploded. I think it’s run into buffers politically. But there’s 70/80 million people there. It’s done very well. It’s got a good infrastructure. It’s getting better. If it can settle down and get over its exchange rates issues, and follow suit as to its currency, I think Turkey’s still got a long way to go to grow. International law firms – there aren’t that many there. I’d say probably fewer than 20.

    Denise Hamer: Is it a language issue? What is it that’s holding the firms back?

    Simon Cox: It was a bar issue originally. The Turkish bar doesn’t allow Turkish lawyers to work with international law firms. So, they set up dual practices. Plus I think it’s a market that people haven’t really focused on until relatively recently.  I was first asked to look at it eight years ago now, and I thought it was a great opportunity. And when I was looking at it White & Case were the only international firm with an office on the ground. They were asked by the government of Turkey years ago to go to Turkey to do all of the government’s work. They’ve made a massive success with it. They’ve suffered that problem of being the ‘only show in town’ so when people get to a certain level and are not promoted, they go somewhere else and set up a competitor. So, the market has sprung up with lots of White & Case alumni, founding new law firms in Istanbul. But it’s a much nicer place to go and work than some of the Central and Eastern European countries.

  • Adriatic Firms Gearing Up For Regional Alliance Launch

    Adriatic Firms Gearing Up For Regional Alliance Launch

    Law firms in Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia are preparing to launch a new legal alliance: Top-tier Legal Adriatic (TLA).

    nikola-jankovic.jpg

       

    Nikola Jankovic, Senior Partner, JPM Jankovic, Popovic & Mitic

    The six firms participating in the alliance – one from each market – are: Tkalcic-Dulic, Prebanic, Rizvic, Jusufbasic-Goloman in Bosnia and Herzegovina; Savoric & Partneri in Croatia; Debarliev, Dameski & Kelesoska in Macedonia; Law Office Vujacic in Montenegro; Jankovic, Popovic & Mitic (JPM) in Serbia; and Rojs, Peljhan, Prelesnik & Partners in Slovenia.

    According to Nikola Jankovic, Senior Partner at JPM and one of the initiators of the TLA alliance, the “main driver was the growing need of clients and international law firms which are confronted with uncertainty when they are choosing their local partner.” He pointed to global players who are not necessarily familiar with the region and require support for multi-jurisdictional projects as the primary target. “Those difficulties would be overcome by establishing a reliable alliance with strong internal structure and close cooperation of the members,” he added. 

    When asked why JPM opted to create a new alliance rather than join an already existing one, Jankovic commented: “The main idea was to be a part of a legal network providing exceptional legal services to clients within a ‘one-stop shop’ concept but with added value gained by connecting top-tier only law offices from the Adriatic region, bringing together more than one hundred lawyers operating as one team. As such an alliance did not exist, the only solution was to create one.” Ales Rojs, Managing Partner at Rojs, Peljhan, Prelesnik & Partners, further explained that “there are some law firms that try to cover the region as a whole already, but aiming to be tier 1 in all of the markets is simply not feasible. Our firm did have a subsidiary in Belgrade in the past, for example, but we closed it because our operation was simply too small and we wanted something bigger which our clients could use as a real one-stop shop solution. Our idea is to bring the absolute best of each of these markets together.” 

    Jankovic is enthusiastic about getting started: “Our main goal for the following year is to introduce TLA to the business community and international legal professionals and to present it as the unique legal network on the Adriatic market whose legal experts, although from six different jurisdictions, are operating synchronously.” He also identified being able to “correspond in the same or similar native languages” as facilitating this ability. With regards to his expectations for the same timeframe, Rojs commented: “To be honest, I do not know yet – we will see what will happen. I am hoping we will receive great and useful constructive feedback from clients to help us shape this up into an excellent project.”

    The projected official launch of the new alliance is set for September 2014. 

  • The Expat On the Ground Interview: Doran Doeh, Partner, Dentons

    The Expat On the Ground Interview: Doran Doeh, Partner, Dentons

    Doran Doeh is a Partner in Dentons’ Moscow office and a member of the firm’s global Energy practice. He has been working in and with Russia since 1991, first with Allen & Overy, where he was the Managing Partner in Moscow for many years, then since 1999 with Dentons, and in its previous iterations (Denton Hall, Denton Wilde Sapte, SNR Denton), he also served as Managing Partner in Moscow. Doeh is a well-established and widely recognized Energy/Natural Resources expert in Russia, and he is commonly listed among the preeminent practitioners in the market. 

    Doran Doeh

       

    Doran Doeh, Partner, Dentons

     CEELM: To start, how and where did your legal career begin — and how did you end up in Russia?

    D.D.: I wanted to be a lawyer from a young age (around 10). It wasn’t the only option – being an actor (like Charlton Heston) or a journalist/writer (Ernest Hemingway) also appealed to me. I also considered becoming a businessman, like my father. But like all of the other possible careers, I worried ultimately that I would not be good at them, whereas I never had any doubt that I could be a good lawyer. I also worked out that in a lawyer’s career it would be possible (as indeed I have found) to combine all the other things I liked doing and make a reasonably good living too. 

     CEELM: How did you end up in Russia?

    D.D.: Well, I started in America but soon longed for European civilization (the Hemingway/Scott Fitzgerald/ T.S. Eliot bug). I did a liberal arts degree at Dartmouth College, then decided that Oxford would suit me, because (this was the late 1960s) it was so deliciously decadent – you could live in very old buildings and have servants – and have one-to-one tutorials. (Yes, Joseph Losey’s film The Servant was an inspiration.  Even more so was his film Accident, which was actually shot at St John’s, my old college at Oxford). Having done history as a major at Dartmouth, I read philosophy, politics and economics (PPE) at Oxford – I thought I was far too young to start such a serious subject as law.

    I had a year with nothing to do when my number came up for the draft lottery during the Vietnam War (fortunately, they never got round to actually calling me up, or my life would have been a lot different) so I spent a year running luxury tours in Morocco. (Sometimes I muse that I am still doing the same job – showing foreigners around an exotic country.) My father thought I was on the road to ruin, so he called me up and suggested that since I liked the old world, why didn’t I think of getting qualified in England, as he had heard they had good lawyers there. That seemed like a good idea, so I joined Lincoln’s Inn and qualified as a barrister. 

    It was only when I found a place as a tenant in a set of chambers, 4 Stone Buildings, that I realized that financially it would be a long hard struggle at the Bar. Arguing my case to a dry old judge was not my idea of heaven on earth (now, of course, I would take a different view) – I was much more interested in the cut and thrust of commercial transactional work. At the time North Sea oil was emerging and often featured in the press. So, I found myself a job in the North Sea oil industry. I joined Burmah Oil (North Sea) Limited virtually on the day that it was announced that it would be taken over by The British National Oil Corporation (BNOC). Most importantly for my long term future, BNOC was at the centre of development of the legal documentation that underlay the workings of the North Sea oil industry, and over time these forms became global standards for the industry as a whole. I enjoyed the feisty interaction with  other lawyers in the industry – I had to learn how to balance assertion with diplomacy and to reach effective compromises in tough negotiations, a great advantage in a commercial legal career.   

    Eventually I was one of the key members of the team that privatised BNOC and floated Britoil.  That was a great experience which taught me a huge amount about how the political and business worlds interacted in British society, and the lessons are ones that I have been able to apply throughout my career including in Russia. 

    I joined Allen & Overy as an oil and gas specialist in 1986, the year the Financial Services Act came into effect. I published an article on how the FSA affected oil trading, and the partners at A&O decided that I must be a wizard at financial services regulation, and they invited me to join the team of three that advised the whole firm on the FSA. It is amazing how much you learn about an industry when doing the regulatory side of it – what people are supposed to do, what they are not supposed to do, how they do both kinds of activity and what can happen when they transgress. I dealt with banking, as well as financial services, regulation – all in addition to my work as an oil and gas lawyer.

    When A&O started their Central and Eastern Europe practice after the Berlin Wall came down in 1989, I was the one interested in Russia. This was partly because it was the great oil and gas producer of the region. However, I had also done a fascinating course in 19th century Russian literature when I was at Dartmouth, and my father’s family had come from Russia around the time of the Russian Revolution. Although they escaped as refugees, my father retained a deep sympathy for Russia that I also inherited. I used to tell people that I hated communism and had no interest in the Soviet Union but loved Russia. I was part of the team that set up the A&O office in Moscow in 1993 and, for my efforts, I was appointed head of the office in 1995 – which is how I ended up in Russia.

     CEELM: What is your role, exactly, in Dentons? Does being an expat in the Moscow office involve different responsibilities than the Russian partners have?

    D.D.: I was head of the Denton Wilde Sapte/SNR Denton Moscow office for twelve years. That is about the maximum that anyone should do a senior role – one of the lessons of Margaret Thatcher’s and John Browne’s experiences is to move on while the going is good. I have to admit that it is a great relief to no longer to be responsible for management issues – such as overseeing budgets and other partners’ performances– and I am having a great time in the new combined Dentons.

    An important part of my current role is on the integration of the two Moscow offices resulting from the combination of the SNR Denton and Salans practices in Russia. This has proved to be much smoother than I had anticipated. The partners are delightful and we all have a lot in common, not least our aspirations for our firm and office. We now have the largest international law firm presence in Russia, including the St Petersburg office, and the most extensive network of offices in the CIS. 

    Another part of my job is to boost the development of the oil and gas practice. I was well known as an oil and gas practitioner in London before I came to Russia and developed a similar reputation when I was here with A&O in the ‘90s. I returned to London after the Russian crash in 1998, and joined, what was then, Denton Hall to become more focused on pure energy work – in that field, the firm was then streets ahead of any other firm. It had an extraordinary roster of partners who were energy lawyers recognized by the legal directories – and I took my place among them. After the experience of A&O, which as a firm was so focused on finance, it was great to be back in the energy sector, and at the highest level. Dentons did not hire me to be a Russia specialist, but when there were problems with the Moscow office in the early ‘00s, they asked me to go back to Russia on a temporary basis to head up the office. As they say, there is nothing so permanent as the temporary, as I found out. I took the view, based on my earlier experience, that to build a viable office we needed much more than just an oil and gas offering and put my back into developing the banking and finance practice.  Banking transactions were never my mainstream work, but I had to cope with a few of them at A&O! My earlier experience as a financial services and banking regulatory lawyer (plus a long term interest in finance from my PPE days) enabled me to “walk the walk and talk the talk” with bankers.  

    Today, as part of the much larger combined Dentons office, I leave the banking partners to get on with their practice and I have reverted back to my original role as an oil and gas partner. I am delighted to say that this is really going well. I have attracted a good volume of work, including some very interesting, cutting edge and challenging deals. 

    As an expat and experienced oil and gas practitioner working with a large team of energetic and ambitious younger partners whose practices focus on other areas, I am often called in to deal with matters where my specialist skills are needed. This applies not only to my Russian colleagues – but also to the American, French and German partners as well – and an important part of my offering is not just oil and gas expertise but also my background as a London practitioner.  English law has become the currency of international legal business in a way similar to that of the US dollar in international financial affairs, and having a senior practitioner such as myself on board provides a degree of assurance to clients.

     CEELM: What were the main challenges you faced when starting to work in Russia, and are those the same challenges you face today?

    D.D.: When I first started working in Russia, it was almost impossible to find locally qualified people who could function effectively in an international law firm. There were very few Russian lawyers who could speak English fluently and of those who could, even fewer had the grasp of commercial and financial affairs at the sophisticated level that was needed. To build an office, we had to hire the best people we could find and closely supervise their work. Finding the best talent was difficult – the recruitment agents who do this as a matter of course nowadays were non-existent at the time – and, given that they were coming from such a different background, managing them was tricky.  “Never assume” was a good rule of thumb, but to do that you had to work out what your assumptions were, and that was not easy in country where the normal ways of conducting business were so completely different to those in the western world. In addition, it was important to get to grips with Russian law.     

    To make the situation even worse, in the early days Russian law itself was inaccessible. When I first came to Russia, there was no standard system of publication of the laws, and many of them would just appear in the newspapers. I used to go around with a Russian lawyer on our team who, whenever he met another Russian lawyer, would offer to exchange copies of newspaper clippings.  Fortunately, the new Russian constitution provided that the laws are not valid until published, and this required the Russian government to establish a system for publication of laws. Because old-fashioned printing of publications was so problematic in Russia, the systems normally used in the West were soon superseded by state-of-the-art electronic databases that became very sophisticated.  It was then a relatively short step for the providers to publish translations of the main laws – otherwise getting translations, which were essential for a law firm in order to prepare legal work of the quality required, would have been a major problem. 

    There was also the problem that the legal system was almost totally unsuitable for late 20th century business – the Fundamentals of Civil Legislation of the Soviet Union was a nightmare to deal with – and often laws were mutually contradictory or had very significant gaps. Over time, this was remedied by a complete overhaul of Russian law.

    Fortunately, all the international firms had similar problems and there was a degree of camaraderie and mutual assistance between competitors in Moscow that would have been unthinkable anywhere else.   

    The situation now is totally different and unrecognizable from what it was in the early ‘90s. Russian law has been very effectively revised and modernized based on German, Netherlands and Swiss precedents. There are now lawyers at all levels of seniority who have been developed by the international law firms. In addition, lawyers in some leading local firms have picked up know-how from international firms and are able to produce work in certain practice areas to the necessary standard. So the legal scene in Moscow is becoming much more what one would expect in the capital of a big country, with a mixture of local and international firms in the market. University students now graduate having learned the basics which enables the firms to train them up in a way that was inconceivable 20 years ago.

     CEELM: How do you think your career was affected by the decision to move outside of the UK?

    D.D.: Your question reminds me of the Robert Frost poem about two roads diverging in a wood. I have been lucky, in that I have been able to keep in close contact with London throughout my time in Moscow, thanks to the firms I have worked for. So I have been able to remain as much an English practitioner as a Russia-based one. It is only in recent years that I have become more fully and permanently based in Moscow, and this is partly a deliberate choice because, as Russia has developed and my own career progressed to a the level of seniority that I am now at, this seemed most appropriate. I think that I have probably attained greater recognition having done what I have than had I remained wholly based in the UK, but – as in Robert Frost’s poem – one never finds out what might have happened had one chosen the other path. 

     CEELM: What have you identified, over the years, as the unique cultural aspects to keep in mind as an expat working in Russia?

    D.D.: In certain ways, the Russians and the British are very similar. They are both outsiders to the main stream of European civilization – not surprising given that they live at the outer edges of Europe.   Russians and British alike can be very reserved with strangers but become warm and hospitable once they get to know people. However, in both Russians and British there is an unfathomable something – a way of going about doing things – that makes their culture distinctive. 

    With Russia, it is extraordinary how much of Russian culture is borrowed from others – music, ballet, forms of literature, architecture, painting – but somehow they Russianize it and then it seems wholly Russian, not borrowed at all.  The best example I can think of is communism – ideas developed by a German Jew working in the British Library in London became the basis for ruling the entire, vast Soviet Union and were wholly internalized by its rulers and peoples.  

    What seems the cultural essence of any particular moment in Russia changes over time and metamorphosizes into something else.  It is part of what makes Moscow such an exciting place to be. 

     CEELM: In general terms, how do you think the lawyers in Russia compare with those in the more established legal markets of the UK or US? Have you seen improvement in the market since you arrived? Are there particular areas they need to improve even more? 

    D.D.: My colleagues are all excellent lawyers and very commercial in their approach, so I don’t have the problems that I hear about from other people. As I said before, there has been a vast improvement over the past 20 or so years – like night and day – although it is possible that our firm has been more effective at developing our people than some of the others.  

    Where there is room generally for improvement is simply in Russian lawyers having more confidence in themselves – there is a tendency to think foreigners do things better.  It is true that the English legal profession has the advantage that their law is the default choice for international transactions, but that does not mean they are necessarily better lawyers, cleverer or more appreciative of client needs.  The top Russian lawyers in international practice (and I include in this partners in the top local firms) can hold their own with anyone. 

    Probably what is needed is a sense of esprit de corps, of being part of a profession. That is held back by the fact that, apart from advocates, the legal profession is unregulated in Russia. There have been government efforts to establish a regulated profession, but there has been strong resistance from the leading private practitioners. I can understand the reasons for this and would not seek to impose something that so many distinguished lawyers think is inadvisable in their country.

     CEELM: On the lighter side, what is your favorite spot in Moscow and why?  

    D.D.: It is hard to beat Red Square as a colossal, impressive sight. I have experienced it in many different circumstances over the years including all times of day and night, summer or winter. For a brief period after the combination with Salans and before we moved to our wonderful new office near Belorusskaya station, I walked through Red Square every morning and evening on the way to/from work. I have had the privilege of seeing it from inside the Historical Museum looking out through the massive doorway that frames St. Basil’s as you look out. I have experienced the military tattoo in Red Square, with bands from armies from all over the world marching. The tattoo ends with Tchaikovsky’s 1812 overture and bells and canons of the Kremlin chiming and booming. It’s quite a spectacle!