An explosive new investigation has uncovered that Alina Kabaeva, the former Olympic gymnast long rumoured to be Vladimir Putin's secret lover, was reportedly given a staggering £63 million in surplus funds following the completion of the Russian president's opulent £1 billion palace near Gelendzhik.
Secret Relationship and Hidden Wealth
Although neither Putin nor Kabaeva have ever publicly acknowledged their relationship, speculation about their romantic involvement dates back to 2008. Multiple reports suggest Kabaeva is the mother of Putin's two sons, born in 2015 and 2019. The anti-corruption organisation FBK, originally established by the late opposition leader Alexei Navalny, first exposed the existence of the luxury coastal estate in 2021.
The Kremlin and Putin himself have consistently denied any ownership of the property, which is officially registered to a company called 'Investment Solutions' through a complex network of shell corporations. Three of Putin's closest associates—former classmate Viktor Khmarin, lawyer Nikolai Egorov, and businessman Ilham Rahimov—are listed as shareholders of this entity.
Funding Through Offshore Networks
According to bank records examined by FBK, 'Investment Solutions' received substantial loans from offshore entities based in the British Virgin Islands. These funds were then funnelled through various channels to finance the palace's construction. The latest investigation reveals that when construction concluded in 2023, an astonishing 6.5 billion rubles (£63 million) remained as excess cash.
This surplus was subsequently directed to two charitable foundations controlled by Kabaeva. The first transfer involved 3 billion rubles (£29 million) donated to the Alina Kabaeva Charitable Foundation, which ostensibly supports female athletes, organises gymnastics festivals, and contributed to restoring a church in occupied Crimea.
Questionable Charitable Activities
However, Navalny's anti-corruption group asserts that the foundation's actual charitable expenditures amounted to merely tens of millions of rubles, with the bulk of the money deposited into a savings account. The remaining 3.5 billion rubles (£34 million) was allocated to another non-profit organisation run by Kabaeva, named 'Heavenly Grace.'
Independent Russian news outlet Meduza reports that this charity spent 30 million rubles (£288,000) at the Imperial Peterhof luxury watch factory. Additional funds supported gymnastics camps in the Novgorod region, which FBK investigators claim served as a cover to provide social opportunities for Putin and Kabaeva's children.
The majority of this money was also placed in a deposit account, generating 435 million rubles (£4 million) in interest during 2024 alone. The anti-corruption organisation concluded that these charities functioned primarily as 'slush funds' designed to finance the lifestyle of Putin and his alleged secret family 'under the guise of philanthropy.'
The Gelendzhik Palace Extravagance
The massive Gelendzhik estate features extraordinary amenities, including 'a balcony hanging over the sea' built directly into the cliff face, allowing the owner to enjoy wine tasting from the palace's extensive cellars. One construction worker described the property as resembling 'the lair of a James Bond villain.'
Originally, the palace contained a striptease stage and a pole-dancing hookah hall, though these were removed during subsequent renovations. A May 2024 FBK investigation revealed that the renovated design now includes a private church complete with a wooden throne for Putin, adorned with sacred religious icons and images.
Additional Palace Revelations
In December 2023, Putin faced accusations of secretly acquiring another ultra-luxury £100 million palace on a cliff edge in occupied Crimea. This sprawling complex, originally constructed for ousted Ukrainian president Viktor Yanukovych, has been transformed into what investigators describe as 'a huge palace' belonging to the Russian leader.
The main residence measures 96,875 square feet, with a second cliff-side building of nearly 53,820 square feet concealed beneath landscaped gardens. The property includes a private promenade, pier, artificial beach with white sand, and a new helipad on the upper slopes.
Interior specifications, documented through project plans and photographs, showcase lavish details surpassing even Putin's other known palaces at Valdai and Gelendzhik. The primary bedroom alone spans 2,600 square feet with a 538-square-foot bathroom, where floral-shaped bathroom fittings reportedly cost approximately £28,330.
An entire floor is dedicated to a private hospital facility—a feature also present in Putin's other palaces, raising questions about the 73-year-old leader's health. This medical suite contains a GP's consulting room, an ENT specialist's office, a dental surgery, and a fully equipped operating theatre stocked with state-of-the-art German and Finnish medical devices.
Financial records analysed by Navalny's team indicate that this Crimean palace was funded through the same intricate network used for the Gelendzhik estate, further linking these properties to Putin's inner circle and alleged secret beneficiaries.
