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Advising Clients on Russian &
East European Business Ventures
by Julie Sadlier*
Unlike most other countries where
clients are likely to be doing business
the former Eastern Bloc does not
have a strong local private legal
consultancy tradition.
The legal systems of these countries
differ considerably from the legal
systems of any western European
state. Their legal systems are
extremely limited and restricted in
their essence and development, and
they lack the sophistication in some
spheres of the law, which would be
considered extremely important in
the legal structure of most western
countries.
Historical Review
A historical review of the
development of the pre-Communist
legal systems of the Eastern Bloc
shows that though they certainly had
their peculiarities, they nevertheless
were developing along lines
characteristic of most European
Countries at the time. (A short but
efficient review of the historical
development of the Russian legal
system is presented in the book
"Soviet Law" by W. E. Butler,
London, 1988).
Looking mainly at the former USSR
(now the Russian Federation), which
was most affected by communism,
we know that after the Great
October Revolution the situation
changed: the new society was to be
built on the basis of Marxism-
Leninism, one of the main dogmas
of which was the fading away of the
law in a Communist society, which
would ultimately not need any law.
The building of the new regime did
not exactly proceed as the classic
theory of Marxism had envisaged.
Nevertheless, there was never a real
need for a developed legal system in
the state.
Julie Sadlier
Some development in the legal
sphere took place in 1960s, after a
new Programme of the Communist
Party proclaimed that developed
Socialism had been built, that the
state from then on was the "state of
all the people", and that the Soviet
people should start creating the
communist society. Some new
agencies were established in the legal
system: Peoples' Courts and Peoples
Guards, for example. It was
proclaimed, that the people
themselves would carry out
legislative functions, and some steps
were made towards achieving this
aim.
The last thirty years was to be the
period of the development of the
legal system, which we see now in
Russia. A lot has changed since 1985
- the beginning of Perestroika - in
both the legal structure and the
legislature.
The body of the Russian Federation
system of legislative documents
consists not only of laws, but of
many other kinds of legal acts. The
power and sphere of influence of
such acts varies depending on the
agency which drafted and adopted
them.
"The body of the Russian
Federation system of legislative
documents consists not only of
laws, but of many other kinds of
legal acts."
The hierarchy of the legislative
documents is as follows (the power
decreasing from the top to the
bottom):
Constitution
Laws, adopted by the Congress of Peoples'
Deputies of the RF, (formerly USSR)
(these laws and other acts are adopted collectively and can be
changed only by the Congress itself)
Laws and documents adopted by the Supreme Soviet
of the RF, (formerly USSR)
Laws adopted by the Supreme Soviets of autonomous
republics and regions
Decrees of the President
Resolutions and decisions of the Government
Orders and instruction, adopted by Ministries,
Departments, Central Bank, other agencies
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