MOSCOW, Aug. 4 - Hungary's OTP Group, which has a bank in Ukraine, is in talks to buy the Ukrainian subsidiary of Russian state bank VEB, Prominvestbank, Kommersant newspaper reported on Thursday, citing sources close to VEB and familiar with the course of the negotiations.

OTP has already done due diligence on Prominvestbank and negotiations with VEB are at an advanced stage, the sources said.

VEB's press service did not respond to the paper's questions on Wednesday. OTP's press service said that the group does not comment on rumors, but is looking for acquisitions in this region, particularly in countries where it already has a presence but its market share is small.