Is it possible to terminate MPLS vpn connection on Linux and how? On my side Linux box has fiber ethernet interface and has fiber plugged in. We do not have any other router etc.
I am assuming you mean that your provider gives you an ethernet cable, which receives IP services through MPLS VPN.
The answer is yes, you can directly attach a linux server to an MPLS VPN connection. As an MPLS VPN customer, you do not require running MPLS encapsulation on the link to your linux server.
Setting up your linux server like this is not substantially different that using it on a direct ISP connection, except the routes the MPLS VPN provider carries in the VPN are usually local to your company.
As far as I know, Linux has poor support for MPLS. I have researched it in the past but couldn't find any readily available implementation that is being used in production networks.
Even commercial Linux-based implementations like Vyatta don't have MPLS support yet.
Mikrotik, a router based on the Linux 2.6 kernel, implements MPLS. It can run on x86 hardware. I think it has a lot of potential for creating a scalable, Layer 3 IaaS platform.