The two ex-Soviet neighbors have been in talks since 1997 over a Union State with a common economic, customs and political space, but the negotiations have been complicated by a host of issues, including energy and financial disputes.
"I have realized after all the latest consultations and negotiations with the Russian leadership that we have different approaches and views on building a Union State," Alexander Lukashenko said.
At the same time, the Belarusian leader said he was prepared to make this union this year.
"We are prepared to build orderly our integration processes with Russia and move further. We are open for close cooperation with Russia. We must return to the practice that there must be no barriers for Russians," Lukashenko said.