LONDON, April 3 (Reuters) - Russian billionaire Boris Berezovsky launched a $500,000 foundation in honour of murdered dissident Alexander Litvinenko on Tuesday and called on investigators to do more to find out who killed the former spy.

Flanked by Litvinenko's widow Marina, Berezovsky said the foundation would seek compensation for all those contaminated by Polonium 210, the radioactive material that killed Litvinenko, as well as campaigning for justice in the case.

"The UK government must uncover this crime or risk being seen as incapable of protecting the residents of this country," he said. "We are ready to do all we can to give the British government our helping hand."

Litvinenko was poisoned and died in London last November. In a letter read out by friends after his death, he accused Russian President Vladimir Putin of being responsible. The Kremlin denies the accusation and Russia has launched its own probe.

British police handed the results of their investigation to prosecutors in January, but little has been heard since.

Britain's Crown Prosecution Service says it asked the police last month to provide more information, but could not say when its review of the case would be complete and when any decision would be taken on whether to charge anyone for the murder.

Louise Christian, a human rights lawyer representing Marina Litvinenko, said the case could not be allowed to be brushed aside, especially if it turned out that people no longer in Britain were responsible.

"There is a real worry that governments will be allowed to stand back and there will be impunity," she said.

"If the Crown Prosecution Service has got evidence against one or more suspects, I hope they would make that public even if the suspects are not on British soil." Berezovsky said the $500,000 he provided to set up the foundation would not itself be used to compensate the victims of Polonium contamination but to fund what is expected to be a lengthy battle to win them compensation.

Marina Litvinenko was tearful and spoke little at a news conference to unveil the foundation, but said in a statement:

"I said in a letter to President Putin that I will not rest until Sasha's killers are brought to justice. The Litvinenko Justice Foundation will campaign vigorously for that. I also never want to see anyone else lose their husband to such a murder."

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