Tories deny oligarch donation claim
Updated on 21 October 2008
The Conservatives deny claims that shadow chancellor George Osborne tried to solicit an illegal donation from Russian billionaire Oleg Deripaska.
George Osborne has been dragged into the furore over Lord Mandelson's stay on a Russian billionaire's yacht.
The shadow chancellor also spent time on Oleg Deripaska's Queen K yacht this summer, it was revealed today.
It was reported that the possibility of receiving a £50,000 donation from Deripaska, reputed to be Russia's richest man, was discussed.
The claims were made in a letter from Nathaniel Rothschild, an acquaintance of both Mr Osborne and Lord Mandelson, to The Times.
Mr Rothschild said that on the yacht, which was moored off Corfu, it was suggested the oligarch could channel cash through one of his British companies.
Accepting donations from overseas residents is illegal, as is using a British company as a proxy to disguise an impermissible donation.
George Osborne's defence
George Osborne defended his dealings with Oleg Deripaska when challenged by journalists by repeatedly saying "we neither asked for money, nor did we receive money."
He added that he will release a "clear chronology" of the occasions that he met with Mr Deripaska in Corfu.
Earlier a Tory spokesman strongly denied the claims, and stressed that the party had not accepted money from Mr Deripaska.
"The allegations made in Mr Rothschild's letter are completely untrue," he said.
"Both Andrew Feldman and George Osborne deny absolutely that they attempted to solicit a donation from Oleg Deripaska. Nor did they suggest a method by which he could conceal a donation via a British company.
"They spent a short period of time on Mr Deripaska's boat at the invitation of Mr Rothschild. Donations to the Conservative Party were not discussed with Mr Deripaska."
Conservative sources said Mr Rothschild had approached the party later and suggested that Mr Deripaska could give money, but the offer had been refused. The sources accused Mr Rothschild of changing his story when challenged.
The letter sent by banking heir Mr Rothschild - who was at Oxford with Mr Osborne and has strong links with the Tory Party - alleged that the shadow chancellor and Mr Feldman went on board Mr Deripaska's yacht "to solicit a donation".
The Tory spokesman said: "Donations to the Conservative Party were not discussed with Mr Deripaska.
"In a conversation on September 18, Mr Rothschild suggested to Andrew Feldman that Mr Deripaska wanted to make a donation to the party through one of his British companies.
"The offer was not taken up.
"For clarity, the Conservative Party has neither sought or received any donations from Mr Deripaska nor any of his companies."
Lord Mandelson has condemned as "muckraking" criticism for accepting hospitality from wealthy individuals such as Mr Deripaska while EU trade commissioner.
