"I think we and Sberbank should first obtain authorization for this, and then launch negotiations," Andrei Kostin said.
He said the talks are necessary because the IPOs of the two banks will affect approximately the same group of investors.
VTB is set to merge with St. Petersburg-based Industry and Construction Bank (ICB), Russia's largest bank outside Moscow.
Kostin said VTB will agree to delay the process if necessary. He added that VTB may or may not include ICB in its financial report before launching the public offering.
The government said last week it will retain controlling stakes in VTB and Sberbank for the next five years. The state's ownership of the banks is set to be gradually reduced over the coming years.
VTB is seeking further international expansion, with branches to operate in 21 countries in the next 18 months. New branches are set to be launched in ex-Soviet republics and in Asia, including in Vietnam, China, and India.
As of June 30, 2006, VTB Group had 151 branches in 13 countries.
