The University of Oxford hopes to entice eastern Europe's brightest students with scholarships worth £25,000 a year from October.
The university has likened the scheme to its Rhodes scholarships, set up to lure smart US students, such as the former US president Bill Clinton, to study at Oxford for two years.
Up to 25 masters and doctoral students will be eligible for the new cash for the next three to five years.
Most will be from eastern Europe, but others will be selected from north Africa, the Middle East and central Asia.
Lord Weidenfeld, a philanthropist born in Vienna and an honorary fellow of Oxford, will provide £625,000 a year to fund the scholarships and they will be named after him.
The university wants to use the scholarships to talent-spot future world leaders. Scholars will be given work placements and mentors after they finish at Oxford.
Oxford's vice-chancellor, John Hood, said: "Oxford is a truly international university and the presence of overseas students who can contribute new perspectives and different experiences is an important element.
"We are enormously grateful to the Weidenfeld Institute for procuring this generous support from a single donor and for the vision for this new programme, which will help to ensure that Oxford continues to play a role in educating and shaping future leaders."
Lord Weidenfeld said: "Oxford University has a worldwide reputation for nurturing the leaders of the future and so the scholarship programme for graduate students was a natural choice. Ultimately we aim to expand the number and possibly the geographical reach of the programme and acquire a property in Oxford to serve as a base for Weidenfeld scholars."