Cisco Promises $1bn To Fund Russian IT Boom

Cisco Systems has promised Russian president Dmitri Medvedev a financial investment of $1 billion to help develop Moscow's answer to Silicon Valley.

According to market analysts, Russia is now one of the most up-and-coming locations for technology research and development. Cisco says that the time is right for investments in the country's IT sector.

The company has committed to investing $1 billion in Russia in five instalments over next 10 years.

Medvedev visited California's Silicon Valley on 23 June during his trip to the United States, dropping in on the headquarters of social networking giant Twitter in San Francisco, Cupertino-based technology leader Apple, San Jose-based networking company Cisco Systems and Stanford University in Palo Alto.

While addressing a crowd of more than 500 guests and media representatives at the university, the Russian president said: "It was not by chance that I came here. I wanted to see with my own eyes the origin of success, how businesses are set up."