Kyrgyz and Russian authorities signed an agreement on establishment of a common development fund with a register capital of 500 million U.S. dollars, will benefit both the countries in fields such as textile industry, agriculture, processing and logistics.

The accord was signed on Monday in Bishkek, capital of Kyrgyzstan. Kyrgyz President Almazbek Atambayev, who oversaw the signing ceremony, said that as his country has been gearing up in preparation for joining the Customs Union, which groups Russia, Kazakhstan and Belarus, and the Eurasia Economic Union, the fund will be helpful to promoting the economy of Kyrgyzstan and to helping it adapt well in the integration process of Eurasia.

Russia has also pledged to move an extra preferential loan of 500 million dollars for the fund.

On May 29, leaders of Russia, Kazakhstan and Belarus signed the Treaty on the Eurasian Economic Union (EEU), in Astana, the capital of Kazakhstan, which symbolizes a new stage of the Eurasian integration process. The Treaty, which aims to create a necessary legal framework for the establishment of the EEU, will take effect from Jan. 1, 2015.

The EEU is designed with the mission to increase economic cooperation within the member states as they agree to guarantee the free flow of goods, services, capital and labor and to implement a coordinated policy in the energy, industrial, agricultural and transport sectors.

Kyrgyzstan is expected to sign a treaty on its accession to the Customs Union and the Eurasia Economic Union on Dec. 23.