We reviewed documents and bank transfers linked to the construction of Putin’s palace near Gelendzhik and found that after the project was completed, 6.5 billion rubles (about $70 million) were left sitting on the developer’s accounts. That money was routed to foundations connected to Alina Kabaeva — Putin’s mistress — under the label of “charity.”

In our new investigation, we once again followed the money trail around Putin’s palace. Formally, Arkady Rotenberg “bought” the palace — for 800,000 rubles (about $9,000).

But the bigger story is what came next: once construction was finished, the developer still had massive “unspent” funds — 6.5 billion rubles (about $70 million).

If the palace truly belonged to its nominal owners, the obvious move would have been to keep that money. Instead, it was sent to structures linked to Kabaeva:

• The Alina Kabaeva Foundation received nearly 3 billion rubles (about $32 million) in 2023.
• The “Heavenly Grace” foundation received another 3.5 billion rubles (about $38 million).

What’s more, a significant portion of this money was not spent at all — it was parked in deposits, generating millions of dollars in interest.

This is how Putin and his inner circle finances private projects and personal comfort: through opaque schemes, front owners, and “charity” vehicles. That is why exposing these arrangements — and naming the real beneficiaries — matters: so they can’t hide behind foundations and nominees, and so that accountability becomes possible in the future.