Deere says to invest over $500 mln in Russia

MOSCOW, July 3 (Reuters) - U.S. farm machinery maker Deere & Co (DE.N) will invest over $500 million in new projects in Russia in the next few years, the firm said on Friday ahead of U.S. President Barack Obama's visit to Moscow.

John Deere's president and chief operating officer, Samuel Allen, to become chief executive on Aug 1, will come to Moscow together with a large group of U.S. businessmen as part of Obama's first visit to Russia as president on July 6-8.

The firm said its investments would focus on new joint projects and innovation technologies but did not elaborate.

Russia has turned into one of the world's largest grain exporters in the past decade following a few years of abundant harvests. Deer & Co, the world's largest maker of agricultural machinery, employs about 55,000 people worldwide.

Several Russian machinery makers have run into trouble since late last year after commodities prices fell and demand for their production plummeted while global credit markets remain shut for many Russian borrowers to refinance heavy debts. (Reporting by Dmitry Zhdannikov; Editing by Hans Peters)