Business Secretary Lord Mandelson has welcomed the signing of a £23 million contract between Staffordshire-based company JCB and a Russian civil engineering contractor.

The minister, on the second day of a business trip to Moscow, said the deal was an example of how Russia wanted British goods and investment.

The Russian engineering contractor MOCT signed up to buy hundreds of British diggers and generators as part of work on road, bridge and tunnel improvements to the Winter Olympic transport infrastructure at Sochi.

The machinery will be used again at Vladivostok, for the construction of a road bridge in advance of the 2012 Asia Pacific Economic Co-operation (APEC) Summit.

Rocester-based JCB announced the contract in Moscow as Tim Burnhope, managing director of JCB Sales, joined the delegation of business leaders to Russia led by Lord Mandelson.

The minister said: "We can move markets as well as earth if we keep the business relations right between Russia and the UK. Trade is growing at more than 25% a year, year on year. Russia wants British goods and investment and Britain likewise welcomes Russian investment in our country."

Mr Burnhope added: "MOCT is one of the largest civil engineering contractors in Russia. This substantial order is a further endorsement of JCB products and the service and support offered by our dealer in European Russia, Lonmadi.

"Lonmadi recently opened a new depot in Sochi to support their sales efforts in the region - we are delighted that the investment in premises and staff has paid off so quickly."