Belgrade  - Russian President Dmitry Medvedev is due in Serbia Tuesday to pay tribute to Red Army troops who fell while liberating Belgrade 65 years earlier, and also to focus on economic issues with Belgrade leaders.

The sealing of a 1-billion-euro (1.5-billion-dollar) Russian loan for cash-strapped Serbia is expected during Medvedev's visit. Belgrade has already set plans to dedicate a third of those funds toward finishing touches on its 2010 budget. The terms of the loan were not yet set.

Belgrade officials welcomed the Russian loan even as they ran into problems with the International Monetary Fund, which withheld the second, 1-billion-dollar tranche of a two-year, 4-billion-dollar standby loan, over Serbia's inability to cut the anticipated 2010 budget deficit.

Medvedev said in an interview with Monday's edition of the Belgrade daily Vecernje Novosti that "large infrastructure projects in the sphere of energy and transport" were also on the agenda.

Russia bought the majority stake in the Serbian oil company NIS in early 2007 - when Medvedev also visited Belgrade, then as prime minister - and is mulling investments in a natural gas storage facility and the possible addition of a Serbian branch to the South Stream gas pipeline project.

Ahead of the visit Medvedev also assured Belgrade that Moscow is determined to continue supporting Serbia's claim of sovereignty over Kosovo, insisting that Belgrade "has the final word."

Kosovo, with its mostly ethnic Albanian population, declared independence from Serbia last year and was quickly recognized by big Western nations, but remains barred from United Nations membership due to Russia's veto. (dpa)