Legal lessons via Russia.

• Author: Phelps, Jack E.
• Position: Alaska law firm Hughes Thorsness Gantz Powell & Brundin - Access the World

An Alaska law firm helps American companies learn the legalities of doing business in Russia.

Okay. You're ready to extend your business into the Russian Far East, but you don't feel comfortable about the Russian laws governing joint ventures. Or you've made initial contact with a potential partner in Vladivostok, but you're uneasy about your upcoming meeting with him in his own country. What if there is some nuance of Russian law you miss in nailing down the terms of the agreement? Will you end up with the lion's share of the liability?

Now Alaska law firm Hughes Thorsness Gantz Powell & Brundin has a unique solution for you: a Russian lawyer in Vladivostok who is fluent in English and specializes in helping companies like yours stay straight with Russian law.

Dr. Nikolai Shcherbina, an expert on international law and former professor at Far Eastern State University, has been advising foreign businesses about Russian law since the early days of perestroika. In 1991, Hughes Thorsness brought him to Alaska to acquaint him with American corporate practice and to learn from him about Russian law. The result was a legal affiliation that is serving businesses in both countries well.

Under the sponsorship of Hughes Thorsness, Shcherbina received the first foreign law consultant certificate granted by the Alaska Bar Association. According to Tim Byrnes, attorney with Hughes Thorsness, this is a "narrow-beamed certificate" which allows Shcherbina to advise American clients on Russian law. Shcherbina maintains his own office in Vladivostok, and Hughes Thorsness provides office space and support staff in Anchorage during his periodic visits to Alaska.

"People doing business in the Russian Far East need advice in both U.S. and Russian law," says Byrnes. The relationship with Shcherbina allows the firm to provide a "multicountry approach for people doing business across both borders." But James Gorski, also a Hughes Thorsness attorney, is quick to point out that the arrangement only extends to legal counsel. "We don't make business decisions, we just provide legal advice," he says.

DIFFERENT LEGAL TRADITIONS

The firm's work with transnational companies has included drafting advice on joint-venture documents, says Byrnes. In Russia, a joint venture is a separate category of business. There is no limit to the amount of foreign ownership a joint-venture company may have, making it an attractive option for American companies doing business in the Russian...