IAPL Article: Update On Drop Of Revenues At Ukraine Law Firms

The legal sector of Ukraine has been thrust into a war-torn whirlwind of an economic climate, bringing with it untold levels of hardship and uncertainty. Yet, in the face of Russian aggression, Ukraine’s lawyers and firms are doing everything they can to uphold their industry – and their nation.

After the first month of the war between Russia and Ukraine, the Ukrainian Bar Association (UBA) conducted a survey among law firms to measure the impact of military aggression on the Ukrainian legal market.

The impact has been profound: 100% of large law firms and 87% of medium-sized firms (16-45 lawyers) reported a “significant reduction” in revenues, with 13% stating income has fallen to 30% or lower. 100% of medium-sized firms have also reported a significant (over 30%) decline in workload.

The larger firms (45+ lawyers) – which the report suggests are taking on most of the pro bono and legal aid work – have larger reserve funds. A third of respondents can manage for a year or more, another third for 3-4 months, and the rest for 1-2 months. Medium-sized firms, however, have less reserves: a quarter have enough for 1-2 months, with the rest having enough for 3-4 months.

For small firms, the picture is mixed: their workload and income have increased in some cases but fallen in others. However, 17% have no reserve funds and only 10% have enough for over a year.

Yet, despite the financial difficulties faced by firms, they have made staff a priority. 86% of large firms have relocated staff, with 67% of medium firms and 39% of small firms doing the same. Of all relocated staff, 40% have moved abroad, with 60% remaining in Ukraine. Regarding the number of relocated employees:


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