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Russian President Vladimir Putin met with VTB Bank CEO Andrei Kostin in Novo-Ogaryovo, Monday. During the meeting Kostin informed Putin of the new 'Post Bank' project, a joint project between the Russian Post and the VTB which will provide financial capabilities to 15 million Russians who currently lack bank services. "Along with the Russian Post we have designed a project of creating the so-called 'Post Bank', combining the leading bank technologies that the VTB Group possesses and the broad network geography, including 40 thousand departments, which the Russian Post has," Kostin stated, adding that, according to his calculations, "around 15 million people who do not use bank services due to a number of reasons, whether it is too far from them or too expensive, will be able to use them." "We have to pay 47 billion roubles [€675 million/$767 million] to the post office for the use of its infrastructure over eight years. This money will be spent on the development of the post itself. Thus, not only the financial institutions will be created in the post offices but also the post will improve its infrastructure, communications system and so on," the VTB Bank chief continued. Detailing the increase in infrastructure, Kostin said that he planned to "open 15,000 offices in the first three years and then we will try to make it possible for all of them to provide basic services," adding that "there will not be any luxurious offices but there will be the cheap accessible banks with basic services." Russian Prime Minister Dmitri Medvedev signed a decree on the establishment of the Post Bank on September 23.
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