Sam Coates, Chief Political Correspondent
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Drunken hellraising: how Osborne met Rothschild
George Osborne has rejected accusations that he either asked for, solicited or received a donation from billionaire Russian tycoon Oleg Deripaska.
But in his first appearance since this morning's revelations in The Times, the Shadow Chancellor was unable to deny that the issue of a £50,000 donation was discussed. It is illegal to receive donations from foreign nationals.
In a letter to the newspaper today, the financier Nathaniel Rothschild, said that Mr Osborne and the Andrew Feldman, the Conservative chief executive, discussed a donation from Mr Deripaska for Tory coffers on board the Russian’s yacht, the Queen K.
Mr Rothschild also said that Mr Feldman suggested that Mr Deripaska might channel the money through one of his British companies.
The furore comes in the wake of the revelation that Lord Mandelson, the new Business Secretary, stayed on the same yacht.
Speaking outside Conservative HQ on London’s Millbank, Mr Osborne said: “A very specific allegation has been made that we solicited a donation from Mr Deripaska and I want to make it absolutely clear that we neither asked for money nor did we receive money.
"People make suggestions about donations all the time... We are not going to give a running commentary," he added.
Earlier, the Tory party said that Mr Rothschild told Mr Feldman in September that Mr Deripaska wanted to make a donation to the party through his British company, Leyland Daf. A spokesman said that the offer was not taken up.
But sources close to Mr Deripaska have told The Times that he did not initiate a conversation about making a donation to the Conservatives.
The sources said he has never donated to any political party, and he has no intention of doing so. They added that he could not understand why the Tories were suggesting the idea came from him. "He is not interested in getting involved in UK politics," the source said.
Mr Osborne confirmed that he met Mr Deripaska on his yacht on two occasions, once with Lord Mandelson and then a second time with Mr Feldman.
Mr Osborne will be publishing a chronology of his meetings with Mr Deripaska later today, he said, inviting Lord Mandelson to do the same.
Mr Rothschild’s intervention is the latest extraordinary twist in the row over the Russian billionaire, which until today centred on his links with Lord Mandelson. It is also the latest in a series of hotly contested holiday tales that have placed the Greek island at the centre of Westminster politics.
In his letter to The Times, Mr Rothschild alleges that Mr Osborne and Mr Feldman went on board Mr Deripaska’s yacht “to solicit a donation”. The claim is all the more sensational because Mr Rothschild has been involved in fundraising for Mr Cameron’s Tories and has been a close friend of Mr Osborne since they were at Oxford together.
A Conservative Party spokesman said: “The allegations made in Mr Rothschild’s letter are completely untrue. 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.”

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"Poison Mandy's" put out the bait and you in the Media have all fallen for It - Well Done!!!
Mike Johnson, London,
check out the "friends of israel" organisation and work out for yourselves the web of relationships between hundreds of "russians" it allegedly assists in "moving" to London .. check out who osbornes "charitable" efforts in Moscow are directed at and youre on your way to a much bigger story ...
chris smith, London, UK
Ayn Rand was SO right - We are living within her novel "Atlas shrugged"! We have a society of political pull and favours. Prestige-driven and power-lusting "secondhanders" all seeking the unearned.
Seb Nash, London,
The country is getting very very sad, please get a life the lot of you. I think there's more important things to deal with right now apart from the travel opportunities of MP's regardless of their position. How about focussing on ousting illegal presidents like in Zimbabwe, then foucus on the UK.
Richard, London, UK
Peter Hooper, Windsor, UK, you are bang on the button, excellent point
peter c, Devizes, Wessex
Farrukh is absolutely right.
Get on with it!
john, woodbridge,
It's unsurprising to hear this kind of story, the Conservative Party exists for the benefit of the rich, they always have done. The problem is that Labour do as well now, a new party that represents ordinary people is needed.
Owen, London, UK
Nice to see Mendelson is back. Is Mr Rothschild a friend?
Rob Scott, Liverpool,
Mr Osborne and Lord Mendelson appear to be 'birds of a feather'.
Mike, Sole Street, England
I agree with you Adrian on all points. Bar proportional representation as that led to the collapse of democracy in the Weimar Republic (Germany post WW1) after Hitler's rise to power.
David Adams, Gloucester, UK
Despite the huge sums Barack Obama has raised for his election campaign, the average donation is just $109 !
If he can do it, why cannot the UK political parties run their general election campaigns with maximum donations of just £100 from each of their supporters and no central government funding
Peter Hooper, Windsor, UK
It seem quite clear that no money was donated to the Conservatives. Therefore whether or not a conversation took place is immaterial. No breach of the rules has occurred.
Now regarding the total lack of business confidence, a story you have relegated in your running order that is far more important
Jeremy, London, England
It's so simple to solve. Ban all donations, fund parties from taxes, MPs get paid £100K a year plus detailed expenses: no second jobs or directorships. Bring in proportional representation. All is clear and the MPs can get on with making legislation in the interest of constituents, not oligarchs
Adrian, Hitchin, UK
If these British politicians were not on Deripaskas boat what were they there for???????????
Robert Yexley, Ferndown, England
Who cares? This is peanuts. The bankers with their million $ bonuses robbed the nation. Why aren't you pursuing them!Farrukh, Woking.
Farrukh - because Osborne wants to be the Chancellor of the Exchequer & if he is corrupt & at the helm, what hope is there for UK PLC?
Brendan, Kingston, UK
Carefully worded and specific denial from the Tories ...
" Donations TO THE CONSERVATIVE PARTY were not discussed WITH MR DERIPASKA. "
.. but they may have been discussed with his staff ? And donations to other front organisations may have been discussed with the man himself ?
archie, aberdeen,
how can the tories say they are the party of middle england if they feel it necessary to make friends with russian multi billionaires on mediterranean yachts?! as worrying as the allegations are, just as important is the moral question of being seen to do the right thing, not just spouting it!
toby, London, UK
whats new? Politicians need get campaign funds from somewhere and always have - for favours returned- why else? Obama's campaign funds have exceeded all previous -very largely from the public's small donations on the Internet. So lets limit gifts to £10k and politely show future big donors the door.
j.bentley, Loule, Portugal
Tories chat with foreign business man. Foreign business man offers donation. Tories refuse donation because it would be illegal.
Is this really a story?
Daniel, Reading, England
this is a Mandy pre snap election trick- they are definitely up to something. WATCH OUT
peter c, Devizes, Wessex
As Mark Twain observed correctly: "It is impossible to
underrate a politician!"
Stephen Back, Monte Carlo, Monaco
With "mutual friends" like that thank goodness for enemies.
Kent, Bath, England
"The bankers with their million $ bonuses robbed the nation. Why aren't you pursuing them!"
Because apparently they want to pursue Robert Peston for outing them.
Neil Murphy, Cromer,
Oh dear, I'm sure 'Boy George' will be regretting this. No smoke without fire i say!
Margaret Young, Kent,
Who cares? This is peanuts. The bankers with their million $ bonuses robbed the nation. Why aren't you pursuing them!
Farrukh, Woking,