"We are pleased with the decision of the court to permit our case to go forward and schedule a hearing on the merits," said Telenor Executive Vice President and Head of Eastern/Central Europe, Jan Edvard Thygesen. "We believe Mr. Izosimov decided to complete this transaction without proper Board approval and in violation of VimpelCom's charter, and that, as a consequence, Mr. Izosimov's decision should be invalidated."

The case is one of three cases brought by Telenor that relate to VimpelCom's acquisition of URS. Following a brief hearing, the court determined that Telenor's case could proceed and granted Telenor's request for the appointment of a two member non-judicial panel to assist the court. Due to the complexities of the case, Telenor chose to exercise its right to request the appointment of the non-judicial panel members.

Telenor believes the most attractive way for VimpelCom to enter Ukraine is Telenor’s proposal for VimpelCom to acquire Kyivstar for cash, which is subject to Telenor and Alfa entering into an agreement providing for a market-based separation mechanism.

"Mr. Izosimov admitted in a February 14 conference call with analysts that the URS acquisition was 'the second best way' for VimpelCom to enter the Ukrainian market and was a 'catalyst' for VimpelCom's acquisition of Kyivstar," said Thygesen. "We hope VimpelCom and Alfa will give serious consideration to Telenor’s proposal for VimpelCom to acquire Kyivstar and for Alfa to enter into a market-based separation agreement with Telenor that will end Alfa’s attacks on Telenor’s ownership of these two assets."

Telenor last week extended until April 14 the deadline for VimpelCom and Alfa to respond to Telenor's proposal.