"We understand VimpelCom CEO Alexander Izosimov’s position, but remain hopeful that Altimo will return to good faith negotiations on the market-based separation mechanism. In our discussions to date, Telenor and VimpelCom have agreed in principle on most of the key terms of the deal. It is only Alfa's refusal to accept a simple, fair and transparent market-based separation mechanism that has led to VimpelCom's decision. Alfa wants a mechanism that has conditions built into it. However, because Alfa has repeatedly breached its existing agreements with Telenor, Telenor cannot accept a mechanism that has conditions that Alfa can use to prevent the mechanism from being effective, or that would expose Telenor to future attacks. We call on Alfa to accept an unconditional separation mechanism and allow this transaction to go ahead," said Jan Edvard Thygesen, Executive Vice President and Head of Central and Eastern Europe.

The separation mechanism proposed by Telenor is intended to end Alfa's attacks on Telenor's ownership interests in VimpelCom and Kyivstar. If initiated by Alfa or Telenor, the separation mechanism would enable the shareholder placing the highest value on VimpelCom to purchase 100 percent of the other party’s shares. The mechanism proposed by Telenor will also protect the interests of all shareholders by ensuring that, in the event the mechanism is triggered, minority shareholders are offered the same price as is paid by the winning bidder.

"In light of the value we believe this transaction would create for all shareholders, it would have been in the interests of all shareholders for VimpelCom to extend this deadline. At the same time, we are encouraged that Mr. Izosimov has said VimpelCom is still interested in buying Kyivstar if Telenor and Alfa can come to an agreement," Thygesen said. "It is time for Alfa to act in the interests of all shareholders and accept an agreement that will move this process forward and contribute to the growth of VimpelCom."