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imageMINSK: Russia will give its ex-Soviet neighbour Belarus a $2 billion (1.4 billion euros) loan this month as the countries prepare to sign a deal on an economic union, Belarussian President Alexander Lukashenko said Friday.

"We have agreed that Russia will transfer us 2 billion dollars as promised," Lukashenko said after meeting Russian President Vladimir Putin in Moscow on Thursday.

Minsk already received a Russian loan of $450 million in January.

The politically isolated ex-Soviet state of Belarus has seen its economic situation worsen considerably in recent months and its currency reserves are significantly reduced.

Lukashenko spoke as Russia, Belarus and Kazakhstan are due to sign an agreement on May 29 creating the Eurasian Economic Union that has Moscow has championed.

"We will not block the signing of this agreement," Lukashenko said.

The union is intended by Putin to restore Russia's influence among its ex-Soviet allies. It is set to come into being on January 1, 2015.

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