During a business trip to Moscow the minister said the deal was an example of how Russia wanted British goods and investment.
The Russian engineering contractor MOCT has 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 also be used for the construction of a road bridge in advance of the 2012 Asia Pacific Economic Co-operation Summit at Vladivostok.
JCB announced the contract in Moscow today, 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 per cent a year, year on year. Russia wants British goods and investment and Britain likewise welcomes Russian investment in our country."