The Soviet "Hobbit"

[Galadriel55]

There are different words for "feet" and "legs" in Russian. Here the artist's imagination took him/her a bit too far.
As for the goblin meaning, I've checked a few dictionaries to make sure: it means "magical creature in English folklore" (translated word-by word from a dictionary). I don't know why specifically English. However, it also says that the concept of "English goblins" is quite similar to a Russian folklore character thats basically a bad spirit that's forced to live amongst humans that does mischief among them. I think this quote from an online dictionary (translated by me) will interest you:

Goblins came into modern literature and culture through John Tolkien's book "The Hobbit", where they are short aggressive underground-living creatures with a very unpleasant appearance. Although the author later discarded the name "goblin", and called these creatures "orcs" in "LOTR", this image of goblins already sunk in. In our times goblins are often illustrated as "little brothers" of orcs, which are larger and more aggressive. A common iage of goblins in fantasy - a short creature with awkwardly "built" [forgive e for a lack of a better word] body, someties with a large nose, usually with green(ish) skin, that lives underground.

Quote taken from here

Yet another opinion about orcs and goblins.