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Thursday, May 26, 2022
HomeLatest NewsWhy in conditions of economic sanctions, lawyers will have more work

Why in conditions of economic sanctions, lawyers will have more work

The world economy is changing rapidly, and this cannot but affect the practice of lawyers. Any crisis is a growth zone. For individual companies, professionals and lawyers. All of them will have a lot of work, say the experts, who were approached by the “RG” correspondent.

Human factor

Individuals are often the most vulnerable in the legal arena, as they are the least prepared for any economic turmoil. Proof of this is a significant increase in the volume of delinquent and non-payment of loans. And as a result, bankruptcies of individuals, predicts Kirill Reznik, a member of the Russian Bar Association, who will be more reliably protected by law. In addition to credit vacations and maintenance of the living wage for the debtor from February 1, 2022, the State Duma is now discussing several more bills in support of the population. One of them is the introduction of a moratorium on bankruptcy until the end of 2022.

– Its meaning is that the creditor may not request bankruptcy of the debtor. This is a good initiative, albeit a temporary one. It will be possible to take advantage of this opportunity and initiate his own bankruptcy. Until now, the hands of creditors are tied, – explains Olga Markus, director of the legal union Nachalo (Novosibirsk).

In addition to introducing credit moratoriums, lawmakers are trying to protect borrowers’ rights in other ways. Therefore, the requirements for maintaining credit histories are being tightened, so that the borrower can prove and challenge incorrect information at the credit bureau. This trend will also continue, Samvel Mehrabyan, an attorney at the United Protection Center, is sure.

Another issue that will affect people in one way or another is mass dismissals from foreign companies, which will cause an increase in the number of wage disputes.

The situation with them is ambiguous: the courts of the Russian Federation consider this category of labor disputes more than others. It is difficult to pay salaries to employees if the company cannot operate and make a profit, says Aktion Pravo expert Oksana Volkova.

Let us remember, according to the calculations of the Yale School of Administration, there are 750 foreign companies that have left or suspended work in our country.

Negotiate without judgment

The main trend of 2022 has not changed: it will be more profitable for companies to solve a problem with a client without a trial, as it has always been, in general, lawyer Yulia Tsvetkova thinks.

In general, the mass exodus and suspension of foreign companies will significantly affect revenues and law firms. Many of them will be forced to work on the brink of profitability, and perhaps even at a loss.

And from this we can deduce the second trend – the diversification of practices, predicts Igor Iofchu, head of the legal department of the Gaskar Group. In conditions of economic turbulence, there is usually a significant reduction in transactions in investment practices – M&A (mergers and acquisitions).

– Conditionally, new types of consultancy will continue and gain momentum: for example, consultations on sanctions. Lawyers who can provide legal support to companies that have fallen under sectoral sanctions will be in demand, says the expert.

There will be more work for lawyers who specialize in protecting interests in property disputes caused by violation of the terms of contracts, including in the supply of goods, believes Maksim Shchors, CEO of Shturm.

Understanding business processes enables lawyers to make the only right decision

The main question here is how to reformat the currency calculations to rubles. Until now, this mechanism causes difficulties even for Russian companies, complains Andrey Naberezhny, a lawyer and expert at Aktion Pravo.

The main legislative changes will be laws and various statutes, instructions from the Central Bank, the Federal Antimonopoly Service and other regulators aimed at restructuring the economy and society in the new conditions.

– It is possible that the adoption of the new version of the bankruptcy law, which was expected last year, will be postponed. New legislation will most likely come out this year to force the introduction of external management in companies that the government decides to control because of their strategic importance and/or because of the unwillingness of the owners to support their normal operation. This will be a response to the sudden withdrawal of several Western companies from Russia.

As a result, we should expect additional activity to expand and update the legislation governing PPPs, fiduciary company and asset management, explains Andrey Chervov, Managing Partner of Avangard Management.

In the field of technology

It is impossible to ignore the IT sphere, along with which legislation is being developed.

Companies of different levels of prosperity and development seek specialists with legal knowledge and experience in the application of technologies and the promotion of business services through the Internet. IT integrators and software developers are actively recruiting entire legal teams. Legislation in this area is flexible and dynamic, and therefore there is always a lot of legal work, recalls Igor Iofchu, head of the legal department of the Gaskar Group. Literally weekly, new legal documents affecting the IT industry are published.

The services of lawyers with specialization in the intersection of digital and information law and investment mechanisms that allow projects in the matter of import substitution will be relevant. For example, compensation, special investment contracts. By the way, the compensation amendment package 2.0 that is being launched can lead to a rapid growth of compensation contracts in the regions, recalls Evgenia Zusman, partner at You & Partners.

– Compensation contract: a mechanism that allows an investor to invest in the development of the region’s economy and join the registry of single providers for up to ten years and provide services to clients in the region without additional tenders. Similarly, a concession or PPP agreement allows the government to find a “lending” partner. The topic of creating unique providers based on 44-FZ is also gaining momentum. Lawyers who have competencies in the field of supporting various types of mechanisms for cooperation between business and the state will also be required, – explains the expert.

Cryptocurrencies occupy a special place in the IT sphere, the status of which is being actively discussed in our country.

One of the reasons for this is that the meaning of the provisions of international financial law recommends that states determine the legal regime for the circulation of “virtual” assets and currencies, including cryptocurrencies. In addition, the issue in question seems to have a deep geopolitical significance, generalizes lawyer Yaroslav Yarutin.

man or machine

Technologies also penetrate the daily activities of lawyers, determining the market value of a person.

– The professional software known in the market no longer provides competitive advantages to the user, it is available to everyone. Today, this is a bare minimum of work, current innovations are nothing more than iterations of existing automation. Only the first owners of the next level of automation will receive an undeniable advantage in the market, explains Dmitry Prisvirin, a legal expert at the Commissioner for the Protection of the Rights of Entrepreneurs of the Voronezh Region.

Often the technology becomes so advanced that it raises the question of displacing the person in the profession. By 2023, digital services will replace about 20 percent of legal departments. Legal technology’s share of law firm budgets by 2025 will be 12 percent. Until recently, legal technology was believed to be a luxury available only to large corporations. Now the situation has changed radically.

Digital services give companies more tools to protect their interests. Track piracy, file a claim or complaint, find a solution to combat violations, obtain rights to an object – everything can be done online, explains Galina Dobryakova, founder of the international copyright protection service

In addition, services based on artificial intelligence are actively developing. For example, there are online construction companies that automatically generate contracts, regulations and standards, explains the expert.

Recall that in Russia by 2024 they plan to launch the Justice-online service. It will be possible to submit an application, provide digital evidence and follow the trial online.

The future of the profession.

In conditions of total savings, companies will optimize their costs, including those of the lawyers involved.

– This will allow second-tier players and the regional legal market, which provide the right level of legal expertise, to strengthen their positions, says Dmitry Prisvirin.

Independent legal services will become increasingly popular.

– The advantages of this approach are the ability of specialists of various profiles, who are ready to quickly connect to a specific task if necessary, and the cost of services. Only very large companies can afford to maintain a large staff of lawyers with similar qualifications, explains Andrey Andreev, chairman of the board of directors of the Moscow Bar Association Andreev, Bodrov, Guzenko and Partners.

Reaction speed and manufacturing ability – this is how you can define the key to success in today’s profession.

– To be a successful legal team or firm, you need to automate processes that make it easy to obtain legal services. Easy data exchange, cloud services, remote interaction, artificial intelligence – high technologies are the most stable and pronounced trend, explains Igor Iofchu, head of the legal department of the Gaskar Group.

In general, the market will move towards more flexible offers.

– Therefore, flexible package offers of legal services will become more popular, when the client himself chooses and puts “in the basket” only what is necessary. For example, just drawing up a document without consulting or checking the purity of a transaction without your support at all stages, – summarizes Nadezhda Morozova, Director of Services and Products of the European Legal Services Group of Companies.

Direct speech

Yulia Voshchinina, head of the legal department of Roskosmos production companies:

– In the 2020s, a lawyer is becoming more than just a local task performer with a narrow range of vision; lawyers have begun to determine the strategy and tactics of work, based on a macro understanding of the situation as a whole in the company. There is an understanding of business processes, lawyers today evaluate many indirect legal factors to find the most effective solution. Now, the transversal interaction of the company’s departments is increasingly important, and the legal service is one of the active participants in the processes of establishing an omnichannel business.


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