On Dec. 24, Russia’s exchange traded fund (ETF) hit an all-time high. By Jan. 23, its value dropped 26% as panic over the U.S. economy spread.

Since then, things have begun to look up once again and Market Vectors Russia (RSX) has climbed 8.9%. The turnaround owes much to the climbing price and growing demand for oil and gas, as 50% of the fund is allocated in those companies, reports Joanne Von Alroth for Investor’s Business Daily.

Investors are also anticipating the transfer of power from President Vladimir Putin to his expected successor, First Deputy Prime Minister Dmitry Medvedev, who is seen more liberal and open. It’s been said before that Russia needs to start buddying up to other countries in order to benefit its own economy, and Medvedev might just the man for that.

A fund so heavily weighted in oil and gas, however, needs to be watched closely for volatility. But the shifting winds in Russia could blow these ETF in the right direction.

Tags: Eastern Europe, Emerging Markets, Energy, Oil, Russia