* Kuzovlev appointed as CEO
* VTB restates plan to gain 100 percent of Bank of Moscow
By Oksana Kobzeva
MOSCOW, April 21 (Reuters) - Bank of Moscow shareholders have elected a former VTB executive as their new CEO, effectively ending Russia's second biggest lender's battle for control of the smaller peer.
Shareholders elected Mikhail Kuzovlev as chief executive of Bank of Moscow, VTB head Andrei Kostin told journalists on Thursday. He replaces long-serving Andrei Borodin, who was also in the running for the post along with deputy Dmitri Akulinin.
The appointment of Kuzovlev, who became acting CEO last week after a court barred Borodin and Akulinin from taking management decisions, marks the end of the corporate battle for Moscow's main investment vehicle.
State-owned VTB had been circling Bank of Moscow, Russia's fifth biggest lender, since last autumn, after Russia's President Dmitry Medvedev sacked the capital city's mayor Yuri Luzhkov.
VTB has paid $3.5 billion for almost 50 percent in Bank of Moscow, which was headed by Luzhkov's ally Borodin since 1995, and wanted to increase its holdings to 100 percent but faced a strong opposition from the lender's management.
In March, Borodin left Russia for London after selling an around 20 percent stake in Bank of Moscow, which he owned together with his ally Lev Alaluyev.
That stake, worth $1.3 billion based on current market value, was bought by businessman Vitaly Yusufov, who might be acting in VTB's interests, Vedomosti daily said.
On Thursday, VTB's Kostin said the lender wants to increase its stake in Bank of Moscow to 100 percent, indicating the return to the initial plans, after saying he sees "no need" to buy out all minority shareholders. (Writing by Katya Golubkova; Editing by Jon Loades-Carter)