It is difficult to believe that, in the not-so-
distant past, Russia was one of the hottest legal markets on the planet.

Throughout the mid-2000s, record oil prices drove Russia's energy-dependent economy to dizzying heights. Keen to tap into this veritable economic gusher, cross-border investors poured bucket loads of cash into the market, and law firms scrambled to keep pace with the glut of big-ticket transactional work. Among the elite dealmakers that profited were international firms such as Cleary Gottlieb Steen & Hamilton; Hogan Lovells; Skadden, Arps, Slate, Meagher & Flom and the U.K. Magic Circle as well as some with broader practices such as Baker McKenzie and Dentons.

Many of these firms had been in Russia since its legal market began with the fall of the Soviet Union. With the leading Russian firms, such as Alrud and Egorov Puginsky Afanasiev & Partners (EPAM), lacking the head start that domestic firms enjoy in most markets, the global firms had the edge, dominating their chosen practice areas. The intense competition for associates and Grade A office space saw rental costs and lawyer salaries skyrocket, even hitting New York levels at some firms.