MOSCOW. Feb 2 (Interfax) - Stock in VTB surged Thursday afternoon after Russian Prime Minister Vladimir Putin announced he was instructing bank management to work out a share buyback from minority holders.

By 4:21 p.m. Moscow time, the stock had risen to 7.484 kopecks per share on the MICEX-RTS, 4.3% higher than its Wednesday closing price.

The state is ready to participate in funding for a share buyback from minority shareholders in VTB (who bought shares in the bank's "people's IPO" in 2007, Putin said at the Russia 2012 forum.

"This is a serious matter in general. I want (