MOSCOW (Dow Jones)–The Russian government is slashing plans to sell a 20% stake in state-controlled bank VTB Group (VTBR.RS) in 2011 after the bank’s stock price fell when investors were rattled by the prospect of so many shares hitting the market, a person familiar with the plans said.

Now the government’s plan is to sell only 10% of VTB this year, according to a person familiar with the …