The Russian Finance Ministry has cleared a proposal to pump RUB239 billion ($6.6bn) into state-controlled VTB Bank and Rosselkhozbank in return for newly issued preferred shares.
The shares on sale are neither part of any stock index nor traded on the open market.
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For this purpose the ministry will use the National Welfare Fund (NWF), an $86bn oil-revenue funded piggy bank.
"The investing of the FNB funds into shares is due to the need to increase the Tier 1 capital by the said credit institutions," the Russian Cabinet’s press service reported.
The two banks turned to the government for help after they were excluded from Western capital markets last month as punishment for Russia’s support of Ukraine’s separatist militias.
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