Following Sovcombank, MTS Bank is the second Russian bank to pursue an initial public offering (IPO) since sanctions were placed on Moscow due to Russia's invasion of Ukraine in February 2022. MTS Bank is the fintech division of a well-known Russian mobile phone provider.

Reuters reports that the Russian Central Bank registered 7.187 million extra ordinary shares worth 500 roubles apiece to MTS Bank in April, representing 19.3% of the bank's expanded authorized capital.

"The funds raised in the IPO will be used by the bank to implement its growth strategy and further scale its high-margin retail business," the bank stated in a statement.

Four people with knowledge of the situation told Reuters in February that MTS Bank intended to go public in the spring and may raise as much as $160.3 million.

This information comes after the US Treasury Department imposed additional restrictions on 13 cryptocurrency fintech companies with ties to Russia.