Magisters has reduced its headcount across the commonwealth of independent states (CIS) by 7%, as firms in the region move to position themselves for the downturn.

The restructuring comes as the Kiev-based firm, currently advising the Ukrainian Government on all issues relating to its sovereign debt, recorded a double-digit rise in revenues for 2008, with turnover increasing by 12.8% to $39.5m (£27.9m).

The firm said the staff cuts, equating to around nine job losses, have been made since last autumn.

Prior to making the cuts, which mainly affect the Kiev office, the firm had a total lawyer count of 130 – a number it expects to reach again later this year through hiring in Moscow and its new Kazakhstan office.

The news comes as it emerges that German firm Beiten Burkhardt has laid off 10 lawyers, two paralegals and 13 support staff in Ukraine. The job losses earlier this year reduce the number of lawyers in the office by nearly a quarter, leaving 32.

Clifford Chance has also been reconsidering its Kiev strategy, despite only launching in the region at the end of last year. The magic circle firm is refocusing on bank and corporate restructuring work rather than real estate and capital markets work.

Commenting on the market, Magisters capital markets partner Olga Khoroshylova said: "2008 has been a very good year for the firm despite the first signs of slowdown.

"The forecast for 2009 is less positive, as investors are losing interest in Ukrainian assets and appetite for Ukrainian risk."

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