Russia might soon have its hand out in order to cover its budget deficit so as to shore up its economy, along with subsequent exchange traded fund (ETF).

For the first time in a decade, Russia could borrow from foreign banks to help ease next year’s budget deficit, reports Andrew E. Kramer for The New York Times. This may signal a longer-than-anticipated recession after funds from oil boom years start to dry up.

Finance minister Aleksei L. Kudrin has assured that the government is not in desperate need of financing, but is open to holding a road show in allowing foreign investors to get acquainted with Russian finances.

Foreign borrowing is seen as a way to help the economy by determining a benchmark rate for loans to corporations that are borrowing from Western banks.

One question, though: with credit markets so tight, is anyone actually going to loan money to Russia?

Due to its $385 billion in reserves, the world’s third largest reserve fund, Russia’s credit rating is still strong and it could even draw down its reserves without having to borrow from abroad. In 2010, the government may borrow $5 billion to test things out.

• Market Vectors Russia ETF (RSX): up 31% year-to-date

Max Chen contributed to this article.

Tags: Eastern Europe, Emerging Markets, Global ETFs, RSX, Russia