UPDATE 1-Russia, Belarus seen eyeing rouble bonds

* Russia, Belarus eye rouble-denominated bonds

* Russia plans to sell up to $3 bln, Belarus up to $500 mln

* Russia to be ready in Nov, Belarus to tap mkt in weeks

(Adds details, quotes)

MOSCOW, Sept 8 (Reuters) - Russia may borrow internationally up to $3 billion in rouble-denominated bonds by the end of this year while neighbouring Belarus is likely to tap the market with a fresh supply of up to $500 million in coming weeks, according to separate comments by a Russian deputy minister and a banker.

Both countries are seeking funds to cover budget deficits after the global economic downturn sent Russia into its first contraction in a decade and hit hard at Belarus, nearly half of whose exports went to Russia last year.

Russia should be technically ready for a bond issue by the middle of November, Deputy Finance Minister Dmitry Pankin told reporters on the sidelines of a conference on Wednesday. However, he said the final decision on timing had yet to be made.

"We are talking about one, two, three billion dollars in the (rouble) equivalent, such are the estimates of Western banks. The market will now accept a maturity of up to 5 years, that is fairly short," Pankin said.

"We would like to be technically ready by the middle of November...(but) I am not ready to say whether it (the issue) will happen this year or next."

Belarus may tap the market in late September or early October selling up to 15 billion roubles ($487 million) worth of rouble-denominated bonds, Andrey Golikov, head of Sberbank's treasury operations department, told reporters at another event.

"(The timing) depends on Belarus, we are practically ready. They look at the budget situation -- when they need money," said Golikov, whose bank has been picked as an organiser for the bond issue.

Pankin also said this year's domestic borrowing is likely to be "a bit less" than the 1.2 trillion roubles ($38.96 billion) planned in the budget. (Reporting by Dmitry Sergeyev; writing by Toni Vorobyova; editing by Stephen Nisbet)