Russia has long turned a cold shoulder to foreign investors, relying instead on its resource-rich land. Recently, however, Russia has taken steps to change that by welcoming investor money to develop its technology sector. Russian exchange traded funds (ETFs) may be affected by foreign policy changes.

According to Andrew Kramer of The New York Times, Russian President Dmitri Medvedev “set out on Friday to woo overseas investors at his country’s largest foreign investment forum, a sharp contrast to previous years.”

During the forum, President Medvedev detailed a dramatic policy overhaul “to diversify Russia’s economy away from oil by developing a high-technology sector with foreign investment.”

In order to cultivate ties with Western countries, President Medvedev said “Russia would cut capital gains taxes, reform white-collar criminal law and privatize state enterprises.” [The Vast Appeal of Frontier Market ETFs.]

According to Don Dion of the Street, Russia will also be developing its own version of Silicon Valley- a city that is expected to have its own regulations and tax codes. Supporting that cause, Medvedev said Russia had already “secured a $1 billion pledge from Cisco (NASDAQ: CSCO) over the next decade.”