Talks with tycoon were a mistake, admits George Osborne

GEORGE OSBORNE today admitted making a "mistake" over his links to Russian billionaire Oleg Deripaska.

In an attempt to limit the damage from "yachtgate", the shadow chancellor also revealed that he will no longer get involved in talks with potential donors.

Mr Osborne took to the airwaves for the first time in four days amid fears among Tories that the affair was severely hindering his ability to attack the Government on the economic crisis.

His reputation has been battered by reports, which he has not denied, that he and Tory party fundraiser Andrew Feldman discussed a £50,000 donation from Mr Deripaska.

The allegation was made by hedge fund manager Nat Rothschild, a friend of Mr Osborne's who has business links to the Russian.

Mr Osborne has denied "soliciting" or receiving a donation from Mr Deripaska, whose £80 million yacht he visited off Corfu this summer.

However, he told Radio 4's World At One: "I think I did make a mistake. In politics, it's not just what you say or what you do, it's how things look. And if I'm absolutely honest, this did not look very good and I regret that."

The Tories will hope that Mr Osborne's admission clears the decks for an all-out attack on Gordon Brown's handling of the economy.