CIS Corporate Counsel: Dmitry V Vetlugin
Who's Who Legal interviews the Head of Legal at Sky Mobile LLC in Kyrgyzstan about the callenges and rewards of doing business there.
Dmitry V Vetlugin
Position: Head of Legal Department
Company: Sky Mobile LLC (TM Beeline)
Sector: Telecommunications
Number of employees: About 600
Preferred law firms: Salans, Baker & McKenzie, Kalikova & Associates and Grata.
Kyrgyzstan is a country with rich natural resources whose development has been hampered by poverty and by political instability. A recent uprising resulting in the overthrow of Kurmanbek Bakiyev, its president since 2005, was instigated as a result of alleged corruption and rising prices. Having said this, it has been considered as a relatively progressive country in central Asia. Telecommunications infrastructure in Kyrgyzstan is being upgraded to incorporate a digital network and fibre-optic links with the help of EBRD loans. Mobile telephone usage is estimated at 60 per cent of the population as of 2008.
Sky Mobile LLC is a telecommunications company in Kyrgyzstan and we have spoken to its head of legal about the country’s law and business climate and his work as an in-house counsel.
Dmitriy Vetlugin began his career at Grata law firm in Kazakhstan. Then he joined another Kazakh firm dealing with subsoil use projects. After being in private practice for about five years, he decided that it would be a great experience to work in-house. He was invited to be the head of legal at Resmi group, one of the largest investment groups in Kazakhstan. Here, his primary focus was on mergers and acquisitions, corporate governance, securities, cross-border transactions and dealing with the work of subsidiaries. Vetlugin says, “This was a great experience because first of all in-house work is very in-depth. You work on all of the things that the company is doing; get to know its culture and the requirements of its management and shareholders. This means that you become more specialised and focused.”
Q&A
How big is your company’s legal department?
Sky Mobile’s legal department consists of seven lawyers besides me. We cover a wide range of issues internally. Two of these lawyers deal with litigations only; the others are busy with daily contract routine, corporate affairs, etc. We are also responsible for communications and relations with different state bodies of Kyrgyzstan.
What percentage of your work is performed by in-house lawyers?
In-house advisers perform 95 per cent of the work involved. We retain outside counsel for major projects, but over the past two years their involvement has been required less than we would have expected. We enlist external advice for any major transactions that involve different jurisdictions and major claims.
What are the advantages of doing work in-house?
In-house counsel better understand the specifics of the business. External advisers can hardly understand corporate values and culture; therefore, their recommendations sometimes do not reflect the business needs as external counsel are sometimes not as flexible as in-house lawyers.
How is life as an in-house counsel different from that of a private practitioner?
In-house counsel must be both managers and advisers. They have the opportunity to be involved in a project from the moment of its conception till its finalisation.
What qualities make a good in-house lawyer?
Unique knowledge and experience, effectiveness, high quality of services for internal client, ability to create and support early warning system for all functions of the company, ability to understand the specifics of the business and ways to achieve targeted objectives without any legal risks, and ability and willingness to cooperate and interact effectively with the internal clients.
Is the role of the in-house lawyer changing?
The role of the in-house lawyer has changed greatly over the last few years. An in-house lawyer is expected to have the required expertise in the field in which he is involved. The role of an in-house lawyer is now more than just an adviser. An in-house lawyer must have good business sense and managerial qualities. These skills are gained on a case-by-case basis by solving the issues that arise in the day-to-day life of the company.
What qualities make a good private practice lawyer?
I think private practice lawyers should be flexible and client-oriented. The other important quality is a good understanding of the client’s needs and of the environment where the client operates.
Do you see yourself hiring the firm primarily, or the individual?
I consider both aspects. First of all, it is of course the reputation and experience of the law firm that is important. Then I pay attention to the individuals working in the certain firm.
When dealing outside your home jurisdictions, how do you find counsel?
I make my own research using various legal directories such as Who’s Who Legal, Legal500, Chambers and Partners as well as seeking recommendations from my colleagues.
What common behaviour from an external adviser or their firm do you find least acceptable?
These are two things: poor quality of service and overbilling.
What makes the CIS region “a good place to do business”?
The CIS region is a developing region. There are more opportunities for further business growth than in the countries of Europe and America. From a lawyer’s point of view, the CIS is good because of the similarity of legal systems and many common things in legislative acts. Kyrgyzstan is a country with a very literal legislation in relation to business. Unfortunately, this year’s inter-ethnic conflict in the south of Kyrgyzstan is causing many investors to think about closing their business because of political and economic instability. Now the major foreign investments are in the mining sphere, particularly gold, and in telecoms and banking, although the actions of the new government have undermined the trust of the banking industry. The situation is very difficult and it is very risky to invest in Kyrgyzstan but taking into account all the work of the government in the facilitation of foreign investment, hopefully new investors will come as the country develops its tourism, mining, production, agriculture and so on. For Kyrgyzstan, the only way to develop faster and to attract investors is to preserve stability and to solve current issues.
What is the most pressing issue facing the legal profession today?
In my opinion it is determining and establishing the role of the counsel within the company and providing the understanding of all the team that legal advice is crucial for any business transaction.