Law firm Houthoff is laying down the defense of Russian clients, including the Russian state. The office announced this on Thursday.
In recent days there has been a fuss about the position of Houthoff, also known as the ‘Kremlin office’.
The law firm said in a statement: “Due to the acts of war in Ukraine by the Russian Federation, Houthoff has decided to end its relationship with the Russian Federation and its affiliates and companies. Houthoff will also not accept new cases from these parties.”
The arrangement is a reversal in the position of the office. A partner at Houthoff showed NRC Tuesday knew that he wanted to continue to defend the Russian state in the big Yukos case. Houthoff has been assisting Russia in this legal conflict with three former shareholders of energy company Yukos for seventeen years. They demand more than 50 billion dollars because the Kremlin wrongly expropriated this group. Four museums in Crimea, annexed by Russia in 2014, tried with Houthoff’s support to prevent a collection of art treasures from being transferred to Ukraine – without success, incidentally.
A number of large Russian companies are also clients of Houthoff. The office earns millions annually assisting the Kremlin. The Russians are by far the largest customer, employees confirmed to NRC.
Lawyer group call
A group of twenty medium-sized law firms wants not only Houthoff, but all lawyers in the Netherlands to resign for Russian clients who do not take a stand against the invasion of Ukraine. This also applies to customers who are not on the sanctions list. The twenty offices no longer consider it ethical to assist them.
The call that went out on Thursday was signed by twenty of the fifty largest offices in the Netherlands. These include the Amsterdam firms Kennedy Van der Laan and Florent, and the BarentsKrans office in The Hague. The large Zuidas offices are missing.
The call goes beyond what law firms are now required to do by law – no longer working for EU-sanctioned clients. According to a spokesperson, many of the companies that have signed the call also have Russian customers themselves. How much exactly is unclear.
“As a result of the invasion and war in Ukraine and the threat of the use of nuclear weapons, peace and democracy in Europe are seriously threatened,” the offices wrote in their joint statement. “Ukraine defends her democracy with all his might, but without outside support this is an unequal struggle. Now is the time to make sure we don’t sit back and watch or look away and keep working.”
Several Russian companies are established in the Netherlands for tax reasons. They are often assisted by Amsterdam law firms. Those offices should no longer provide services to the Russian state, Russian companies or oligarchs “unless they openly oppose the invasion of Ukraine”. The signatories believe that firms should follow their “moral compass” “even more strictly” in times of war.
Zuidas offices absent
Notably absent from the list of signatories are the large Zuidas offices. NRC wrote on Tuesday that many offices on the Zuidas are not yet ready to drop their Russian customers. They were approached to join the joint call, but did not choose to sign the call.
Also read: Zuidas does not just drop Russian clientele
Several large firms, such as Loyens & Loeff and NautaDutilh, say they are checking their portfolios for possible EU-sanctioned clients. Loyens & Loeff emphasized on Tuesday that this does not mean that it will say goodbye to all Russian customers. “That wouldn’t be right.”
According to the twenty medium-sized firms making the call, complying with sanctions alone is not enough. Law firms should take a principled position to “prevent the promotion of the interests of those who (indirectly) facilitate the war against Ukraine. Now is the time to show color.”
GroenLinks announced on Wednesday to ask parliamentary questions about the attitude of the Zuidas companies, among others. The party wants to know from Minister Sigrid Kaag (Finance, D66) how far it can go to force offices to lay down the defense of the Russian state. Kaag showed Wednesday opposite news hour also want to tackle trust offices that facilitate the tax establishment of Russian companies in the Netherlands.