Yes and the KHL was pretty much made of the "not quite NHL yet" Czechs, Finns and some Swedes so the markets dried out of top end talent in smaller leagues.
I have explained it already but I can repeat.
I see two biggest problems: 1) NHL Transfer Agreement (NHLTA), 2) IIHF incompetency
1.NHLTA gives the NHL clubs a right to sign any player, including a player under valid Euro contract. It simply means the European contracts are not worth of a paper they are written on. NHL pays these leagues some fixed sum, which do not cover the clubs´ investment on development of the players. Btw, NHL pays as a league, not individual NHL clubs.
Btw, a decade or so ago (pre Malkin/Ovie) the Russians negotiated about NHLTA and agreed to everything except one point - the Russians wanted the NHL clubs not have any right to take a player under contract in Russia. NHL refused.
What NHL pays is a development fee. But, a transfer fee - negotiated on case-to-case & depending on player´s skills - do not exist in Euro-NHL transfers. Btw, in soccer both mechanisms exists - development fees (U23) & transfer fees which goes to millions.
2.IIHF does not effectively rule the international transfers of under 18 players. For example, SHL club signs a Czech young player for free. So, his Czech club gets nothing. Why?
Another problem are out-clauses for free in case of offer from foreign, usually KHL but not only, club. Here I blame the IIHF & those clubs accepting such clause when singing the contract with player. For example, KHL rules forbid such kind of clauses. I do not understand why other leagues can not do the same.
Yes, KHL clubs get the better players from European leagues, but (if not that out-clause) the KHL club needs to negotiate about a transfer fee with that European club. There are examples when clubs agreed on terms. And also we have examples when the agreement was not reached & the player stayed in his current club (for example, from my head, Avtomobilist wanted a goalie from Liberec but Liberec refused, Dinamo Minsk wanted a goalie from Sparta who refused the offer). See? The KHL club has no right to take that player, there needs to be agreement between a player, his current team & KHL club. With NHLTA in place, the NHL club just needs to agree with a player (not that difficult) while European club´s interest is ignored, irrelevant.