As of February 1, the local Kiev team of Schoenherr led by former Schoenherr Partner Denys Sytnyk is operating as a separate independent firm. Schoenherr will also continue to service clients via its Ukrainian desk headed by Austrian-based Alexander Popp.
According to information provided by Schoenherr to CEE Legal Matters, the main reason for this move is "the substantial change in demand in the Ukrainian market for legal services by foreign investors.” The feeling of the firm was that, given the unique state of developments in the country, "demand in the local legal market does not address its full range of services, but is instead very much focused on a small range of services, such as competition, litigation, and criminal law matters,” areas that "Schoenherr did not extensively market in Ukraine."
As a result, in mid-January Schoenherr’s Partners and local Ukrainian Partner Denys Sytnyk decided that "the best solution for the special situation in Ukraine lies in the local team owning and running the Kiev-based business, as they can address the unique challenges in the Ukrainian market with far more flexibility than an international firm like Schoenherr.”
The local team will not work in an exclusive alliance with the regional firm but, according to Peter Klopf of Schoenherr, "the network is there, the relationships are old and the connections are strong, and to the extent possible, most work will be carried out in collaboration between the Kiev desk and the former Kiev office."
Klopf explained that clients "will benefit from a smooth transition from the previous office constellation in Kiev to the local team-driven solution. Otherwise, it will be 'business as usual' and clients will continue to be serviced by the same lawyers who have advised them over the past few years.”
The move follows Chadbourne & Parke’s retreat from the market in August this year. At the time, Chadbourne explained that “unfortunately, the Ukrainian economy has struggled over a number of years, leading to a severe drop-off in outside investment. The recent turmoil and economic climate have only made the situation worse. In view of the currently difficult legal marketplace and the problematic long term outlook, it was not practicable for us to continue our operations in Kiev."
Image source: schoenherr.eu
