Legal Business

Not reached the bottom yet – sanctions on Russia begin to bite for law firms

Jaishree Kalia reports on the anticipated fall-off in deal work in the wake of Ukraine crisis

Russia’s volatile political environment has begun to impact the business of international and domestic law firms in Moscow as M&A activity falls, new capital markets work dries up and expanding sanctions cause increasing concern.

Western targeted sanctions imposed largely on individuals in Russia over its handling of the crisis in Ukraine have already had a crippling effect on corporate activity. However, it is the looming threat of yet tougher, broader-based sanctions as the situation escalates, with measures potentially targeting the Russian financial and energy sectors specifically, which could cause advisers even deeper problems.