Member Article

Thanks to Houston's leading role in energy, the exotic names of former Soviet Republics forming the Commonwealth of Independent States -- entities such as Kazakhstan, Azerbaijan, Ukraine, Tajikistan and Uzbekistan -- are familiar to locals active in oil and gas. They are also well known to Houston law firms that serve energy interests. Serving Russia and the Caspian region, Haynes and Boone LLP opened a Moscow office last year. Bracewell & Giuliani LLP set up offices in Almaty, Kazakhstan, in 1997. Baker Botts LLP opened a Moscow office in 1993. Vinson & Elkins LLP established a Moscow office in early 1991. These law firms face common challenges inherent in practicing in the region. Because the CIS countries have only been capitalists for about 15 years, their legal infrastructure is still developing. "They've made good strides, but it is still challenging to deal with the evolving laws in various jurisdictions," says Vinson & Elkins Houston partner James L. Cuclis, who coordinates V&E's international practice. In some countries, corruption may be an issue. American companies, in particular, must remain in compliance with the Foreign Corrupt Practices Act. "In any of these emerging markets you have to figure out how to get the job done without getting entangled in that," says Bracewell & Giuliani partner Gregory J. Vojack, who is a leader in the firm's work in Kazakhstan. Figuring out "the culture" and "what life is all about" also presents challenges, says Vojack. "A lot comes down to how to work their system to achieve your goal," says Haynes and Boone partner S. Douglas Stinemetz, who established and runs the firm's Moscow office. Developing trust with business partners cannot be emphasized enough, he adds. "They are still at an earlier stage of capital development in these countries. Many don't trust institutions. They don't trust companies. They don't trust abstract organizations," he says. "But they do trust people, and it is only if they trust you personally that you will make any headway."