UPDATE 1-Russian tycoons agree asset split

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MOSCOW, April 17 (Reuters) - Russian billionaires Mikhail Prokhorov and Vladimir Potanin said on Thursday they have agreed on how to split their assets, with Potanin buying out Prokhorov's share in a jointly controlled firm. The two said in a statement that Potanin's vehicle, Interros, would buy Prokhorov's 50 percent stake in KM Invest, a Russian firm that manages the tycoons' assets valued at between $11 billion and $14.7 billion.

They also said Prokhorov's investment vehicle, Onexim, would acquire KM Invest's 27.5 percent stake in developer Open Investments, its 91 percent stake in insurer Soglasiye and control of asset manager Rosbank and some geological exploration assets.

"We have managed to overcome all the differences and come to a mutually beneficial agreement. I hope the conclusion of such a large-scale restructuring will have a positive impact on the investment climate in our country," Potanin said in the statement.

The duo have been in the process of dividing their assets, which include stakes in metals giant Norilsk Nickel (GMKN.MM: Quote, Profile, Research) and Russia's top gold producer, Polyus Gold (PLZL.MM: Quote, Profile, Research) (PLZLq.L: Quote, Profile, Research), for over a year.

A source close to aluminium firm UC RUSAL's shareholders said RUSAL, controlled by billionaire Oleg Deripaska, expects to close a deal to buy Prokhorov's 25 percent plus one share stake in Norilsk by the end of next week.

KM-Invest also holds an 8 percent stake in Norilsk and a 7.4 percent stake in Polyus Gold. The statement did not explicitly say what would happen to these assets.

"This agreement allows us to receive stakes in companies of strategic interest for us and concentrate on our own projects," Prokhorov said in the statement. (Reporting by Gleb Bryanski; editing by Elaine Hardcastle)