An investigative report by Alexey Navalny exposes connections between Capital Group and the Government of Moscow

An investigative report, released in August 2019 by Russian opposition leader Alexey Navalny, exposed corrupt practices of Natalia Sergunina, Deputy Mayor of Moscow for Economic Policy and Land and Property Relations. Among other findings, Navalny described Sergunina family’s suspicious ownership of properties in Capital Group projects. In particular, Sergunina’s father, a military pensioner, was found to have bought in 2012 a luxurious 350 sq.m. apartment in the ‘City of Capitals’ highrise complex, which the company had built in the Moscow City district in 2009. According to Navalny, the property had a market value of 215 mln. Rubles (6.9 mln. USD at the time of the purchase) and could not have been afforded by Sergunina’s father on his meager pension. Furthermore, the report showed that in 2013 Sergunina’s sister Irina Sergunina (Safanieva) bought a 326 sq.m. street retail property in the company’s ‘Legend of Tsvetnoi’ mixed-use complex, which was built in the heart of Moscow in 2011. The property, with a market value of 470 mln. Rubles (14.7 mln. USD at the time of the purchase), could not have been afforded by Segunina’s sister who had little income.