Veon operates its Beeline brand through its subsidiary Vimpelcom in Russia, a market that accounts for about half of the group's revenue.
Veon joins the growing list of Western companies to dispose of assets in Russia since Moscow sent tens of thousands of troops into Ukraine in late February.
The transaction is expected to complete by June 1 next year, Veon said.
"I am confident that the agreed sale of Veon's Russian operations to the Vimpelcom management team represents an optimal solution for Veon, its Russian operations and the stakeholders of both companies, including customers, shareholders and creditors, as well as employees both in and outside of Russia," CEO Kaan Terzioglu said in a statement.
($1 = 60.3500 roubles)
(Reporting by Reuters; Writing by Alexander Marrow; Editing by Guy Faulconbridge and David Goodman)