The Russia house

„You can see the sprawling, Italian-style palace on the Black Sea in satellite photos. There's a fitness spa, a hideaway »tea house«, a concert amphitheater and a pad for three helicopters. It's still under construction, but already the cost is said to total more than $1 billion. And most amazing of all, according to a Russian whistleblower named Sergey Kolesnikov, it was predominantly paid for with money donated by Russian businessmen for the use of Prime Minister Vladimir Putin. The funds have come »mainly through a combination of corruption, bribery and theft«, charges Kolesnikov, a businessman who until November 2009 worked for one of the companies he alleges was investing money for Putin.

Kolesnikov lays out the story of this 21st-century czar's palace - and the secret funding network that is paying for it - in a remarkable open letter to Russian President Dmitry Medvedev. This letter was delivered Tuesday to the Russian U.N. mission in New York, and a full English translation is available online at CorruptionFreeRussia.com. It's one of the most detailed allegations I've seen of the links between Putin and Russia's »crony capitalism«. The corruption is pervasive, and it is disgraceful and crippling for our great country writes Kolesnikov, citing a recent Transparency International study claiming that corruption, overall, totals $250 billion to $300 billion annually. He calls on Medvedev to »show to our entire nation that everyone is equal before the law, even prime-ministers.«

A spokesman for Putin declined to comment. One Russian source speculates that the Black Sea palace may be used to entertain guests during the 2014 Winter Olympics in nearby Sochi. Kolesnikov is one of those brave souls a journalist meets occasionally, who decides to expose what he sees as wrongdoing, regardless of the personal risks. I met him this month and reviewed his notes and other documents supporting his charges. The Russian businessman, who became wealthy through various ventures, including a medical-supply company called Petromed, appears to have nothing to gain personally by attacking Putin - and much to lose. That boosts his credibility in my eyes.”