INTERVIEW-UPDATE 1-Telenor pins hopes on Moscow court appeal
* Loss in Siberia court on Weds would allow top court appeal
* Sale of Vimpelcom stake unlikely but not impossible
* Telenor CEO meets PM Putin for lunch in Moscow
(Adds Baksaas quotes, background on dispute, investor rights) By Gleb Bryanski
MOSCOW, Sept 29 (Reuters) - Norwegian phone company Telenor (TEL.OL) is hoping a Siberian court will issue a ruling on a $1.7 billion fine that will allow it to take its appeal to a top Moscow court, Telenor's CEO told Reuters on Tuesday.
"We are also looking for a next step here, with also the potential to get the case heard in Moscow," Jon Fredrik Baksaas told Reuters on the sidelines of an investor conference after having lunch with Prime Minister Vladimir Putin. The appeal is due to be heard on Wednesday in the Siberian oil town of Tyumen, home town of TNK-BP, the oil venture of Telenor's estranged partners in Vimpelcom (VIP.N), the Alfa Group.
The fine could result in the sale of Telenor's stake in Vimpelcom, Russia's No. 2 mobile operator.
If Telenor were to lose the appeal in Tyumen, it would have the right to appeal in the Supreme Arbitration (Commercial) Court in Moscow, where its case could be heard by a bench of as many as 13 judges.
"There are many potential outcomes. And one outcome could be that there is an appeal to Moscow," Baksaas said.
"If the verdict is maintained as it has been appealed in Tyumen then of course there is grounds to bring it further to the next level," said Baksaas, one of 15 foreign executives who joined Prime Minister Vladimir Putin for lunch at the Kremlin hotel.
Putin's spokesman said Baksaas showed "lively interest" in the meeting and therefore was invited. He said his conversation with Putin was brief but declined to disclose the details. Putin earlier said he would not interfere in Russian court rulings.
"I am of the opinion that (the case) will be resolved in another manner than that (the sale of the stake) although we cannot rule out the possibility," Baksaas said.
The case is closely watched by foreign investors, who are largely sceptical the stake will be sold but fear the effects on investor confidence and asset values if a foreign company, part owned by a European state, is stripped of a prime asset, even by a court.
The government, however, says the court process is fair and has resisted any appearance of intervention.
"If they do (proceed with a sale) we are crossing into a different space with a lot of consequences not only for Telenor but also for other stakeholders linked to foreign direct investment," Baksaas said.
In another case, Alfa sparred with partners BP (BP.L) last year for effective control of their joint oil venture, TNK-BP. TNK stands for Tyumen Oil Co.
Alfa says it bears no relation to Farimex, the tiny Vimpelcom shareholder which claimed in court that Telenor had damaged Vimpelcom's business in Ukraine. Telenor is attempting to prove in U.S. court that the two are linked.
(Reporting by Gleb Bryanski; writing by Melissa Akin; Editing by Jon Loades-Carter)
((melissa.akin@reuters.com; +7 495 775 1242)) Keywords: TELENOR RUSSIA/
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