VTB CEO Andrei Kostin has approached Prime Minister Mikhail Mishustin with a proposal to merge two more banks into a common group with the bank – Crimea’s RNKB, controlled by the Federal Property Management Agency, and the Central Bank’s subsidiary Otkritie, Kommersant reported, citing its sources. All three banks are under US, UK and EU sanctions.

According to the newspaper, the idea has already been approved by Russian President Vladimir Putin. He believes that such a decision will allow the banks to “noticeably save money on branches,” which VTB and Otkritie often duplicate, personnel costs, and also “bring a major federal player to Crimea,” the newspaper said.

According to Kommersant’s sources, the idea has already received support from the Central Bank. The Central Bank and the Ministry of Finance did not respond to Kommersant’s inquiries. VTB, Otkritie and RNKB declined to comment.

The Central Bank planned to sell shares in Otkritie this year and together with investment consultants studied various options of the deal – both IPO and sale to a strategic investor. But after the start of the special operation in Ukraine, it suspended preparations for the sale.