The retreat was once used by Leonid Brezhnev, one of the last of the great Communist dictators.
Brezhnev entertained Henry Kissinger and Fidel Castro there and loved to go wild boar hunting. But while Mikhail Gorbachev shunned the place, Yeltsin moved in last year.
He flies there regularly by helicopter from the Kremlin amid complaints that the vibrations of the aircraft are wrecking its historic monuments.
A senior KGB source tells me that Yeltsin is also using State cash to build a private villa at Barviha, on the Moscow outskirts and 15 minutes from his new palace. Special army units are constructing a three-storey home on a five-acre plot in the forest.
It has bullet-proof windows, copper guttering and a swimming pool. This is said to be Yeltsin’s fourth private home outside Moscow – another was bought for his wife Naina and two more for his daughters.
How is all this possible on Yeltsin’s paltry earnings? I am told that Alexander Korjakov, Yeltsin’s chief personal bodyguard and drinking crony, now demands more than £6,000 from foreign TV journalists craving an interview with his boss.
All this was summed up by one of Yeltsin’s new neighbours in the Krylatskaya district.