Heat 2 tablespoons of olive oil in a large sauté pan over medium-high heat. Add beets, carrots, and potatoes, and sauté, stirring occasionally, until vegetables are softened.
While vegetables are sautéing, bring broth and water to a boil in a large soup pot. Add the soft vegetables, salt, pepper, and bay leaf. Simmer for 15-20 minutes.
Remove bay leaf. With a handheld blender or food processor, blend the liquid and vegetables into a thick soup .
Serve soup warm topped with a generous dollop of smetana (sour cream), and rye bread with roast beef on the side.