By Ekaterina Janashia | 2026-01-29

Hidden behind sheer cliffs on Crimea's southern coast, a heavily guarded palace outfitted with a private clinic, cryotherapy chamber and $37,000 gold-plated bathroom fixtures has taken shape on a remote headland overlooking the Black Sea. A new investigation by the Anti-Corruption Foundation (FBK), founded by the late opposition leader Alexei Navalny, says the estate forms part of a secret network of residences tied to Russian President Vladimir Putin.

FBK estimates the cost of the Cape Aya compound at about 10 billion RUB ($125.8 million). Investigators describe the estate as a palace, not a vacation home. They say it reflects the scale of elite excess surrounding the Russian presidency.

From resort to palace

The site's origins trace back to one of the most notorious corruption scandals in post-Soviet Ukraine.

In 2007, the family of Viktor Yanukovych -- then Ukraine's prime minister and later president -- bought a 3.5-hectare (8.6-acre) Soviet-era resort on Cape Aya for about $1.2 million. As construction expanded, Yanukovych publicly denied any connection to the project, though locals dubbed it "Yanukovych's dacha."

Yanukovych was ousted in 2014 after mass protests against corruption and fled to Russia. That same year, Moscow annexed Crimea. Sevastopol's then-governor, Sergey Menyaylo, said the unfinished complex would be seized by the state and converted into a public resort or sanatorium.

FBK found that instead, the property was quietly transferred to Russia's Presidential Property Management Department. Ownership was later concealed through a network of companies linked to billionaire brothers Yury and Boris Kovalchuk, longtime Putin associates often described as members of his inner circle.

According to the investigation, the original foundation was reused but dramatically expanded.

"Yanukovych's dacha is a hovel compared to what has been built on Cape Aya now," the FBK report stated, noting that the main building alone exceeds 9,000 square meters.

Inside the compound

FBK said it obtained architectural plans and interior photographs showing what investigators describe as extreme and highly controlled luxury. At the center of the residence is a 233-square-meter grand hall with an eight-meter floor-to-ceiling window and a dining table designed to seat 20 people.

The master suite spans 154 square meters and connects to a 50-square-meter marble bathroom featuring a gilded jacuzzi and a built-in television. The compound also includes a private medical clinic with multiple offices, a spa, a swimming pool and a cryotherapy chamber.

Investigators said the estate carries technological signatures seen at other properties linked to Putin. They highlighted industrial-grade ultraviolet air purifiers installed throughout the living quarters -- the same models documented in the Kremlin and at the Black Sea residence near Gelendzhik commonly referred to as "Putin's Palace."

The cost of custom hardware stands out even within this setting. FBK identified rose-shaped taps and showerheads made to order. A single set of these "golden roses" costs nearly 3 million RUB ($37,000). In one bathroom alone, investigators counted 15 such elements, putting the price of hardware there at more than 11 million RUB (about $138,000).

A guarded secret

FBK argues that the Cape Aya estate fits into what it calls a "unified system" of secret presidential residences. On paper, the Crimean palace is owned by Bereg LLC, a subsidiary of Golden Gate. The same legal representatives also work for Binom JSC, the company that formally owns the Gelendzhik palace.

Design and construction were handled by UK Credo, a firm that has overseen most of Putin's official and unofficial residences, including his "Tea House" at Valdai and an underground ice complex in Krasnaya Polyana. FBK also traced financing to Vladimir Kolbin, the son of Putin's childhood friend Peter Kolbin, and to companies such as Aratron and Forstis, which investigators say have funded other assets tied to the president and his associates.

Security around the site reinforces its status. The compound is shielded by steep cliffs but remains visible from parts of the Great Sevastopol Trail, a popular hiking route. In 2021, journalists from Novaya Gazeta who attempted to approach the site were stopped at a checkpoint. When they asked who the construction was for, both a guard and a worker replied with a single word: "Putin."

FBK said interior design specifications required compliance with standards set by the Federal Protective Service (FSO), the agency responsible for protecting the Russian president. As the report noted, "The FSO does not protect oligarchs; the FSO protects the president."

For FBK, the palace is not only evidence of corruption but a symbol of fear. Investigators draw a direct parallel to Yanukovych, whose extravagant lifestyle and secret properties became rallying points during Ukraine's 2014 uprising and ultimately preceded his flight from power.

The report concludes by urging supporters to share its findings to dismantle what it calls the "myth of the modest leader," arguing that one day such palaces could become "museums of corruption," like Yanukovych's former estate outside Kyiv.