Russia VEB will agree to Vimpelcom, Kyivstar merger

MOSCOW Oct 8 (Reuters) - Russia VEB bank, which hold a blocking stake in Russia's telecom operator Vimpelcom (VIP.N) as a loan collateral, will agree to its merger with Ukranian mobile operator Kyivstar, the bank's head said on Thursday.

"We do not have any other options (but to agree), those are good companies," Dmitriyev said.

Russia's Altimo, a major shareholder in Vimpelcom and Norway Telenor TEL.NO have announced earlier this week their plans to merge Vimpelcom and Kyivstar and create a leading emerging markets' mobile operator. [ID:nL5628437]

Altimo obtained a one year $1.5 billion loan from VEB in October 2008 pledging a blocking stake in Vimpelcom as collateral and VEB has agreed to extend the loan for another 12 months on Thursday. (Reporting by Dasha Korsunskaya, writhing by Dmitry Sergeyev, editing by Gleb Bryanski)