Filenews 15 October 2023 - by Evagoras Prokopiou
The two candidates for the presidency of the Cyprus Bar Association (GPA), Christos Clerides and Michalis Vorkas, cross swords in the arena of "F", focusing on the series of sanctions imposed by the EU and the US on Russia and broader Russian interests following the invasion of Ukraine and which have affected and are drastically affecting the legal world in Cyprus.
On Wednesday, October 18, lawyers will go to the polls to elect their representatives for the next three years. Two formations are running in the elections, that of Michalis Vorkas, until recently president of the Nicosia Bar Association and that of the current president, since October 2020, of the Cyprus Bar Association, Christos Clerides.
We asked the two candidates to comment and analyze the management and upheavals brought to the Cyprus law sector by Russia's invasion of Ukraine but mainly by the international sanctions imposed and directly affected the professional activities of a large number of law firms in Cyprus.
We moved quickly and efficiently
Sanctions were imposed by the US on only one Cypriot law firm and this has now ceased its operation, the current president of the GPP Christos Clerides stressed.
He added that no one spoke positively about the approximately 4,500 lawyers and the approximately 841 LLCs and 1,327 ASPs law firms, which for a year and a half have adapted with effort and cost to a huge business and professional challenge that affected the world. He also stressed that for decades Cyprus has been established as a vibrant business hub, closely linked to Russia and that lawyers have professionally assisted by providing services, as is the case in every country, with wealthy investors of every nationality.
The economic benefits for the country, directly and indirectly, have been enormous, Clerides notes, but in Cyprus we insist on tarnishing an entire professional sector, something that is not done in other countries. He assured that lawyers in Cyprus are distinguished for their scientific and professional training and their rich professional experience.
He also recalled that "we issued a directive on sanctions from March 2022, guiding our members continuously. These sanctions issues were extremely complex and it is only the European Commission that is competent to interpret them. We have sent a number of queries through the Ministry of Finance. We have been and are in constant communication with all relevant bodies and we are cooperating so that the country is properly supervised. We have taken credit as supervisors for our prompt and adequate actions."
In addition, the current president of the Cyprus Bar Association noted that the entire legal community has taken measures that have affected the way it operates, changed its business plans, and adversely affected the profitability of the offices, with all the obvious consequences.
Differentiation on certain procedures
On the other hand, the other candidate for the presidency of the Cyprus Bar Association, Michalis Vorkas, indicates that the Association, as a supervisory authority, must act in accordance with the provisions of the relevant Law 188(1)/2007.
He also stressed that over the last three years, he believes that efforts have been made in the right direction, but in a way and procedures that in some cases could have been different, through another procedural and substantive approach.
He noted that he has repeatedly taken a position and disagreed with several issues related to the issue, primarily the public differentiation related to the wrong communication approach on the part of the Cyprus Bar Association regarding sanctions against Russia.
He told us that "we must be careful about what we convey to the outside world and listen to the consequences of what we say to the legal world we represent, but also to the Cypriot state and the economy of our country in general."
He added that his concern, if elected, will be to avoid similar situations in the future that affect the state and the credibility of the Cyprus Bar Association and its members.
They also disagree on the extent to which the industry is affected
Mr. Clerides told Phileleftheros that not all lawyers have been affected by what was done regarding sanctions on Russians, but only those who had clients related to the Russian factor, which is not only a Cypriot phenomenon.
But he noted that the biggest headwind for the services sector stems from banks, which have proceeded to a very strict degree of compliance, closing the door even to legitimate investors.
He said a number of law firms have been affected, but he does not believe the vast majority of lawyers and law firms were directly affected. He added that they were probably indirectly affected by the effects of the war, but the number of offices that had such a clientele, out of a total of 4,500 lawyers, is relatively small.
Finally, he said that what the Bar Association is trying to achieve and has achieved to a large extent, is to increase, where possible, the legal material, in the good sense of the term and not corporatistly.
Vorkas, for his part, said that, unfortunately, the consequences of the war between Russia and Ukraine did not leave the legal sector unscathed. He noted that for many years Cyprus was one of the main investment and business centers for citizens of both countries, something that had happened through good and commendable cooperation mainly of the state, lawyers and accountants. He also does not agree with his counter-candidate that the legal syllabus has grown enough to fill the vacuum left by the Russians.
Finally, he said that any cooperation with Russian businessmen based in Russia carries severe sanctions, which end up disastrous for violators.
