Jo Lunder, a Norwegian national who was alternately CEO and a board member of Vimpelcom between 2001 and last April, was detained late yesterday at Oslo airport as he flew in from London.
"It's in connection with the Vimpelcom case," Marianne Djupesland, a police officer covering financial crime, told AFP.
US and Dutch authorities suspect Vimpelcom, whose shares are listed on Wall Street, may have made illicit payments between 2006 and 2011 to a company close to Goulnara Karimova, daughter of Uzbek President Islam Karimov, in order to obtain operating licences.
Lunder's lawyer Cato Schiotz told public broadcaster NRK that his client denies any involvement in any alleged graft at the company.
"I spoke to him several days ago. He said he was not involved in possible corruption at Vimpelcom," Schiotz said.
Vimpelcom said Tuesday that it has set aside USD 900 million for potential fines arising from the case, which has been interpreted as a sign it is bracing for sanctions.
The case is making waves in Norway where the government, which holds 54 per cent of shares in Telenor, has demanded to see the operator's accounts.
The Norwegian telecoms firm has expressed an intention to sell its 33-per cent stake in Vimpelcom, but finding a buyer could prove difficult as the Russian provider fights the corruption case.
Telenor's Finnish-Swedish competitor TeliaSonera was previously embroiled in graft claims in Uzbekistan, contributing to its decision in September to quit the Asian, Caucasus and Moldavian markets.