Authorities in Moscow have arrested several senior police officers on charges of running organised rackets in the city.
Observers expect more arrests in the police force
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The gang is thought to number more than 100 policemen.
About 600 agents of the Federal Security Service, FSB, were engaged in the surprise operation that took a year to prepare. Forty premises have been searched, and $2m recovered so far.
At one point the FSB agents had to use explosives to force their way into the premises where two officers had barricaded themselves in.
Observers believe the rot has permeated the entire police headquarters, and expect more arrests.
We are declaring war on organised crime. Ranks and titles will mean nothing. There are no untouchables
Russian Interior Minister Boris Gryzlov
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The news of the operation was broken by Russian Interior Minister Boris Gryzlov.
He said he had declared war on police crime, and that no officer could consider himself untouchable, whatever his rank.
Contract killings
Arrests were made even among the commanding officers at Moscow's criminal police headquarters - Russia's answer to Scotland Yard.
They are accused of organising and running protection rackets and forcing businessmen into submission by starting criminal procedures based on planted evidence, like drugs and guns.
Those who refused to pay were prosecuted and jailed.
To cover their racket, the police gang set up a private security agency which controlled several casinos, trading companies and restaurants.
They also oversaw the secret production of handguns that were sold to criminals.
The detained police officers are suspected of complicity in the recent spate of high-profile contract killings in Moscow and elsewhere.