Frankfurt - Deutsche Bank said Thursday it would expand its investment-banking operations in Russia, buying 40 per cent of UFG Invest, a Russian funds company.

In a joint statement in Frankfurt and Moscow, they said the existing Deutsche funds company in Russia, DWS Investment Russia, would be merged with UFG Invest, but the announcement did not say when this would happen.

Deutsche, Germany's biggest bank by business volume, is currently in talks on taking over Postbank, which has the largest number of retail customers in German.

The cost of the Russia transaction was not disclosed. The statement described UFG Invest as one of the top 10 companies in investment banking in Russia with managed funds of 400 million euros (570 million dollars).

Deutsche had an option to expand its shareholding in the business to 100 per cent, the statement said. (dpa)