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 action against property developer Inteko marks a significant development in the scrutiny of Yelena Baturina's business empire, which was led by her husband, Yuri Luzhkov. The raid involved OMON riot police and plainclothes individuals, who reportedly took the management from the office. Additionally, the Bank of Moscow and the residences of its directors were also searched in connection to an embezzlement inquiry. Investigators believe that employees at the bank and real estate developer Premiere Estate misappropriated a 13 billion roubles ($444 million) loan, with the funds ultimately reaching Baturina's personal account. Luzhkov's removal last autumn and the appointment of Mayor Sergei Sobyanin, an ally of Prime Minister Vladimir Putin, led to capital outflows from Russia and weakness in the rouble. This also resulted in ownership changes in assets controlled by the city, such as Bank of Moscow, which state-controlled VTB is trying to acquire. Baturina, who holds a controlling stake in Inteko, was involved in a complex deal that is under investigation, where a 13 billion rouble loan was used to purchase land from her debt-ridden company. However, neither Inteko nor Baturina were named as suspects in the probe, and there was no implication of wrongdoing as the money was received through a legitimate land deal. Baturina criticized the recent raid, stating that it was meant to pressure her and her company. The Inteko spokesman also mentioned that there are no criminal cases against Inteko or its employees, and there is no basis for any cases. Baturina, who is a billionaire, and Luzhkov have faced accusations of corruption, which they have both denied. Corruption in the construction sector, influenced by decisions made in the mayor's office, has been a concern for businessmen. Luzhkov has denied that his wife received special treatment for projects during his time as Moscow's mayor. The presence of riot police with weapons during the search of Baturina's company is seen as a warning that her empire is being targeted by powerful groups within the elite, following Luzhkov's public challenge to Kremlin chief Dmitry Medvedev. Challenging the leadership in Russia can have serious consequences for tycoons, as they risk losing their assets, facing prosecution, and ultimately fleeing the country. President Medvedev has pledged to enhance the business environment and protect property rights, but investors believe that the lack of a reliable rule of law remains a major obstacle for business in Russia.