The Russian economy has cratered – but most Canadian investors are unlikely to have much exposure to it

Russia produces about 10 per cent of the world’s oil, but the rest of its economy is more of a lightweight. Before it attacked Ukraine, and had its financial system crippled by severe sanctions, Russia accounted for about three per cent of global GDP. Because Russian stock markets were closed after the invasion, investors have been unable to sell their holdings. So, while many Canadian investors want to divest from Russia for ethical or practical reasons, most are unlikely to have much exposure to Russian securities, according to Sebastien Betermier, Associate Professor of Finance at Desautels.