Russia’s second largest bank, state-owned Vneshtorgbank (VTB), may acquire a 50% stake in a medium-sized Uzbek Kapitalbank.

The banks have been reportedly in talks since the end of last year, and now there are only formalities left to settle. If the deal goes through, it will be the second sale of a stake in an Uzbek bank to a foreign partner.

Uzbekistan with its 27-million population has 28 banks, out of which four are joint ventures, but Russian capital has not been represented there so far.

VTB, which soon will float a stake as part of its "popular" IPO, has recently announced plans to buy 50% of an Azerbaijani state-owned bank. In the CIS, VTB is already represented in Armenia, Ukraine and Georgia.