* Stake may be used during Metalloinvest's IPO-CEO
* IPO unlikely for next 1-2 years-CEO
* Alisher Usmanov and partner Vladimir Skoch own 80 pct
* Metalloinvest eyes spinning off copper mine Udokan (Adds details, quotes)
By Polina Devitt
MOSCOW, Dec 18 (Reuters) - Russia's largest iron ore miner Metalloinvest said on Tuesday it plans to buy a 20 percent stake held by VTB by the end of the year and may use it as part of its planned share sale.
VTB bought the stake in Metalloinvest - controlled by the country's richest man Alisher Usmanov - last year for a price of between $2 billion and $3 billion. The bank has said it would either sell the stake or place it in the market as a part of Metalloinvest's planned initial public offering (IPO).
"By the end of this year Metalloinvest will become the owner of its 20 percent stake," Eduard Potapov told journalists.
Metalloinvest is unlikely to proceed with an IPO for the next year or two, he said.
Usmanov and his partner Vladimir Skoch own a combined 80 percent stake in Metalloinvest according to its website. Potapov did not say how the deal will be structured or at what price.
Metalloinvest, a part of Usmanov's portfolio, which also includes stakes in Arsenal football club and Megafon, was one of several Russian firms that planned to go public in 2008, but cancelled due to the financial crisis.
VTB bought the stake from minority shareholder Vasily Anisimov, a source said at the time, to cover a loan of $1.5 billion taken out by Anisimov in 2008 from VTB, against which he pledged a stake in Metalloinvest as collateral.
VTB planned to sell its 20 percent stake in Metalloinvest by the end of November. The deal will help VTB, which reports nine-month earnings this week, boost its bottom line.
Potapov added that Metalloinvest is considering spinning off its giant Russian copper deposit Udokan as a possible scenario for its development. (Reporting by Polina Devitt; Writing by Katya Golubkova; Editing by Megan Davies and Louise Heavens)