UK Imposes New Sanctions on Provision of Legal Services to Russian Entities

A new law announced by the U.K. June 29 could prevent lawyers from providing legal services to Russian companies in "certain business deals -- thwarting the nation from benefitting economically from" British legal services, the Ministry of Justice said. The rules are meant to build on existing restrictions imposed on Russia covering the provision of legal services by also extending these restrictions "to facilitate certain commercial activity which benefits the country." The legislation could also block "legal professionals" from advising international companies on lending decisions to Russian companies, the ministry said.

In an explanatory memorandum, the U.K. government said the restriction "does not cover legal representation services" since access to representation is an "important element of the core democratic principle of the rule of law." Under the restrictions, legal service providers can still offer key expert evidence in legal proceedings, "even where the services activity would otherwise be prohibited to a person connected with Russia." Auditing services will continue to be permitted where there are "statutory or regulatory obligations."