Russia keeps on chugging, as the economy is lifted by soaring commodity prices that are helping capture great numbers for the related exchange traded fund (ETF).

For the first quarter, Russia’s economy expanded at 8.5%, surpassing expectations, which were at 8%. The country boasts one of the best-performing emerging equity markets, reports Polya Lesova for MarketWatch.

While the 8.5% figure is a slowdown from the fourth quarter of 2007’s 9.5% expansion, the economy is still strong, thanks to continually rising energy prices and strong domestic demand.

The benchmark Moscow RTS stock index is up 3.3% for the year so far, making it one of the best performers in the emerging market space. The Market Vectors Russia (RSX) is up 10.4% year-to-date.

Russia stock market is driven by gas and oil, and the latest commodity boom has been a boon to investors of this region. The country is a big exporter of natural gas, oil and metals. However, Russia isn’t letting this go to its head, as they’ve refused to step up their oil production on the belief that this boom is a bubble, which, if it pops could lead to a crash.

Tags: Commodity ETFs, Eastern Europe, Emerging Markets, Energy, GUR, Metals & Mining, Natural Gas, Oil, Russia