Rostelecom may hand control of its mobile assets over to banks VTB and Bank Rossiya, which own Tele2 Russia, according to Vedomosti.

Rostelecom, the fifth-largest mobile operator in Russia, said that in return it will likely get between 40 and 49 per cent in a combined company that merges its mobile assets with those of rival Tele2 Russia, reports the newspaper.

Last month, VTB sold half of Tele2 Russia to banker Yuri Kovalchuk, who controls Bank Rossiya, and Russian tycoon Alexei Mordashov.

VTB and Kovalchuk, reports Vedomosti, will get the remaining 51-60 per cent of the combined company.

State-controlled VTB bought Tele2′s Russian business in April in a deal worth $3.55 billion.