Bank of Moscow, Russia’s largest bank, must be privatized via an auction, Economic Development Minister Elvira Nabiullina said on Thursday.
"I think there should be an action,” Nabiullina told journalists. “In terms of efficiency and the investment climate, it would be the correct thing to do."
The Moscow government plans to sell stakes in it 53% share in the bank via direct and indirect holdings this year.
Russia's second largest bank VTB has said it wants to buy a 100% of the bank and has applied to the country's competition watchdog for permission to do so.
Another large lender, Alfa-bank, also claimed it wanted to take part in the privatization but has not yet submitted any applications.
Earlier on Thursday Vedomosti business daily said an offshore company allegedly controlled by Bank of Moscow President Andrei Borodin and Deputy Chairman Lev Alaluyev wanted to increase its holding in the bank.
MOSCOW, February 10 (RIA Novosti)
