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. This 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 were reported to have entered the office and taken the management for questioning. The Bank of Moscow and the homes of the bank's directors were also raided as part of the embezzlement probe. Investigators suspect employees at the bank and a real estate developer of using a 13 billion roubles loan to embezzle funds that were eventually transferred to Baturina's personal account. The removal of Luzhkov last autumn and the appointment of Mayor Sergei Sobyanin, a close ally of Prime Minister Vladimir Putin, led to an increase in capital outflows from Russia and a decline in the value of the rouble. This also resulted in changes in ownership of assets controlled by the city, such as Bank of Moscow, which state-controlled VTB is trying to acquire. Baturina, who is the president of Inteko and holds a controlling stake in the company, was involved in a probe launched in December regarding a complex deal involving a 13 billion rouble loan used to purchase land from her debt-ridden Inteko. However, neither Inteko nor Baturina were named as suspects in the investigation, and there was no suggestion of any wrongdoing on their part as Baturina received the funds through a legitimate land deal. Baturina criticized the raid as an attempt to pressure her, stating that there are no criminal cases against her or Inteko employees. Inteko spokesman Gennady Terebkov also denied any basis for such cases. Baturina and Luzhkov, who have faced corruption accusations, denied the claims. Businessmen believe corruption in the construction sector is linked to decisions made in the mayor's office, but Luzhkov denies that his wife received special treatment during his time as Moscow's boss. The presence of riot police at Baturina's company is seen as a sign that her empire is being targeted by powerful groups within the elite following Luzhkov's confrontation with Dmitry Medvedev. Going against the Kremlin is extremely risky for any wealthy individual in Russia, as those who defy the government typically lose their wealth, are prosecuted, and end up leaving the country. President Medvedev has pledged to enhance the business environment and protect property rights, but investors believe that the main obstacle for businesses in Russia is the absence of a reliable legal system.