Builders at a £1billion palace allegedly owned by Russian President Vladimir Putin have confirmed the once-opulent home is riddled with mould and in a constant state of disrepair.

Russian opposition leader and Putin nemesis Alexei Navalny last month released a series of images purportedly of the palace’s luxurious rooms – including a strip club, casino and a theatre.

The photographs were released alongside a YouTube video which claimed the palace was being reconstructed due to a mould issue.

The Kremlin has denied claims of the palace’s extravagance – with Putin blasting the allegations as ‘boring’ and a ‘compilation and montage’.