The latest hit by U.S. investment banks is causing deep trouble in areas and exchange traded funds (ETFs) on the other side of the globe, and Russia is beginning to feel the recent fallout.

After the collapse of Lehman Brothers (LEH), Merrill Lynch (MER), and Bank of America (BAC), Russia’s primary stock indexes MICEX and RTS have plunged this week, reports the Minyanville staff.

The fear of a repeat of 1998’s economic crisis caused regulators to shut down both exchanges, with trading halted by noon on Tuesday. After trading resumed on MICEX, it fell another 190 points. Russian banks that felt the blow are Gazprom Bank, Sberbank and VTB.

Some analysts are attributing Russia’s quick fall to frayed nerves after the conflict with Georgia, as well as the economy’s heavy reliance on commodities.

Market Vectors Russia (RSX) holds 7.6% in Gazprom and 7.9% in Sberbank.

Tags: Emerging Markets, Financial, RSX, Russia