Confidence in Russia’s exchange traded fund (ETF) could be restored after the country’s forces fully completed a withdrawal from zones around Georgia’s rebel region Wednesday.

An imminent withdrawal occurred earlier than ordered by French president Nick Sarkozy, also president of the European Union. He had brokered a peace plan to be set into action by Friday.

Adrian Blomfield for Telegraph reports that this type of activity raised the hopes that Russia would abide by its words of promise to withdraw troops from Georgia after going back on several earlier pledges made after the five-day war in August.

In the United States, one Barack Obama advisor said the United States should keep open negotiations with the Russian government on a missile-defense system for Europe, as well as support Russia’s entry into the World Trade Organization. Although the advisor says he is not a direct advisor and is not an official respondent of the Democratic party’s policy, he does believe that isolating Russia is a mistake.

Henry Meyer for Bloomberg reports that McCain believes that they should treat Russia as it is – not as they wish it was. McCain did state, “a modern Russia that acts at times like the old Soviet Union” and says the country shouldn’t have a place in the WTO. The Group of Eight would also exclude Russia, as McCain is acutely critical of Vladimir Putin.

Market Vectors Russia (RSX) has a lot at stake, as Russia and its related ETF have gained from the recent commodities boom and can capitalize on more “petro dollars.” The fund is sharply off its highs this year. It’s down 63.8% this year, and 68.5% off its May 19 high.

Tags: Eastern Europe, Emerging Markets, Obama, RSX, Russia