The Dynasty Foundation -- set up by Russian ex-telecoms magnate Dmitry Zimin -- was branded a "foreign agent" by authorities yesterday under 2012 legislation targeting NGOs that receive funding from abroad.
"I obviously don't want to spend my own money and be accused of doing it on behalf of a foreign government," Zimin told Russia's Interfax news agency.
The nonprofit foundation -- which has a 2015 budget of some USD 8.6 million to fund scientific research and teaching -- said in a statement that a decision on its future would be taken to at a meeting on June 8.
Kremlin spokesman Dmitry Peskov defended the decision to include Dynasty on the list of foreign agents and said that it could always appeal.
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"If Zimin receives money from abroad, then in accordance with the law it is included on the list of foreign agents," Peskov said.
"If he has been included on the list but did not get any money from abroad then there is a basis to challenge the decision in court."
"Registering Dynasty on the list of foreign agents proves that the law is flawed," Kudrin wrote on Twitter.
In a step seen as a further stage in the Kremlin's clampdown on civil society, Russian President Vladimir Putin at the weekend signed off on a law that would allow authorities to ban foreign NGOs deemed "undesirable" to the state.
Supporters of Putin say the various laws are designed to stop NGOs fomenting an anti-Kremlin revolution in Russia with the help of Western governments.