The awards show was the first time reality star Kim, 33, and 32-year-old Bey have been on the same red carpet, and rumour has it things are not good between them.
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Bey and husband Jay Z, 44, skipped her wedding to Kanye West in May, and Kim apparently blames her for this.
Organisers of the VMAs are said to have seated Kim and Beyoncé on opposite sides of the venue, and ensured the cameras avoided Kim during Bey's performance.
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A source told the Mirror: "It was the first event that Kim and Beyoncé have both attended since Beyoncé didn't show up for Kim's wedding, so it was planned with military precision.
"It would have been a PR disaster for them to bump into each other unawares and for the incident to be caught on so their people made sure their arrival times on the red carpet were ages apart, and their seats were on opposite sides of the auditorium."
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Kim apparently refused to skip the event just because Beyoncé was performing, despite insiders suggesting Bey makes her feel 'insecure'.
A source told Radar Online: "[Kim] thinks that Beyoncé has always been very arrogant and aloof around her. Kim always made a real effort to get to know her and Jay, but she was always left with a very cold feeling. Beyoncé made Kim feel very insecure and that isn't something she's used to."