Russian authorities conducted a raid on a property company owned by the wife of Moscow's former mayor as part of an investigation into possible embezzlement and misuse of city funds related to a $440 million land deal. The raid on Inteko, a property developer, marks a significant development in the investigation into Yelena Baturina's business empire. OMON riot police and plainclothes individuals arrived at the office and took the management for questioning, according to an anonymous Inteko employee. In addition to the property company, police also raided Bank of Moscow and the residences of its directors as part of the embezzlement probe. Investigators suspect that employees at Bank of Moscow and Premiere Estate used a 13 billion roubles loan to embezzle funds, which ultimately ended up in Baturina's personal account. The removal of Luzhkov last year and the appointment of Mayor Sergei Sobyanin, a supporter of Prime Minister Vladimir Putin, led to capital outflows from Russia and a decline in the rouble. This also resulted in changes in ownership of assets controlled by the city, including Bank of Moscow, which state-owned VTB is trying to acquire. Baturina, who has a controlling stake in Inteko, was involved in a probe last December regarding a loan used to buy land from her debt-ridden company, but she and Inteko were not named as suspects and there was no suggestion of wrongdoing. Baturina criticized the recent raid, stating that it was merely an attempt to pressure her and her company. Inteko spokesman Gennady Terebkov emphasized that there are no criminal cases against Inteko or its employees, and that there is no basis for any legal action. Baturina, who is valued at $1.1 billion, and Luzhkov have faced corruption allegations, which they both deny. Businessmen claim that corruption is rampant in the construction sector, which is heavily influenced by decisions made in the mayor's office. Luzhkov denies that his wife received special treatment during his time as Moscow's mayor. The raid on Baturina's company by riot police armed with automatic weapons is seen as a sign that her business empire is being targeted by powerful groups within the elite, following Luzhkov's public challenge to Kremlin chief Dmitry Medvedev. Challenging the leadership of the Kremlin in Russia can have serious consequences for any wealthy individual, as they risk losing their assets, facing legal consequences, and ultimately fleeing the country. President Medvedev has vowed to enhance the business environment and protect property rights, but investors believe that the inconsistent rule of law is a major obstacle for doing business in Russia.