Companies Most Exposed to Ukraine

As investors work to evaluate the effects of a growing list of economic sanctions against Russia, and the devastating impacts inside Ukraine, it can be difficult to keep perspective. While events continue to unfold and the list of unknowns grows, there are some metrics that can assist.

When evaluating individual companies, it’s helpful to know not only where a firm is located, but also where it earns revenue. This is important, as prior research has shown that the geographic distribution of revenue  has had a significant impact on stock prices — especially in the wake of geopolitical events, such as the conflict between Russia and Ukraine.

Considering how companies in the global MSCI All Country World Index (ACWI) earn their revenue, we found that the MSCI ACWI had a relatively low overall revenue exposure to Ukraine as of Feb. 18, but there were a few companies with significant exposure, particularly in the financial sector. This is a key input as investors evaluate their portfolios.