Let me see if I understand it correctly. You want to run a Veeam Back & Replication server in a VM on Azure.
I assume you have B&R running on-premises who is taking the backups. Then you want to (on a schedule probably) upload the VBK to that Azure VM and if necessary do a ILR from that VM. Is that correct?
This is certainly theoretically possible but don't know if this is going to be the most effective solution.
I would prefer for this scenario to create a vpn-connection to your Azure subscription and then do a backup copy job to the B&R Azure VM Repository. Even take advantage of the WAN accelerators in our solution