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Russia’s largest air carrier Aeroflot will receive the state-owned block of shares of the Vladivostok-based airline Vladavia, aiming to create a subsidiary in the Russian Far East.

The plans were announced by the head of the Federal Property Agency Valery Nazarov Tuesday, news reports said.

The addition of Vladavia to the state-controlled Aeroflot is part of the flag carrier’s project to create a powerful airline company in the Russian Far Eastern Federal District.

The project consists of merging the three air carriers in the region - Dalavia, Sakhalin Airlines and Vladavia. Aeroflot is performing the consolidation of the assets in the region in two stages, first by absorbing Dalavia and Sakhalin Airlines and then adding Vladavia during the second stage.

Today, 52.16 percent of Vladavia’s shares are state-owned.

According to Aeroflot’s General Director Valery Okulov, creating Aeroflot’s subsidiary in the region will not make much sense without the addition of Vladavia. “We are carrying the project forward and so far we do not have any reasons to change it,” Interfax news agency cited Okulov as saying.

The presidential decree, combining Vladavia’s state-owned shares with Aeroflot’s authorized capital, has already been prepared and coordinated by the Federal Property Agency and Transport Ministry. The decree has yet to be approved by the Economic Development Ministry and the Federal Anti-Monopoly Service.