With many positive characteristics, these risks seem to outweigh some of the pluses Russia brings to the table. Lots of natural resources, $600 billion in forex reserves and a growing consumer economy all provide Russia with investment appeal. However, if an investor cannot stomach the risk, then they should not be in areas that have more than the usual.
The SPDR S&P Emerging Europe ETF (GUR) can provide investors with a little more diversified exposure to Russia. This ETF comprises 35.6% Russia; 22.9% UK; 12.2% Poland; and 10.6% Turkey, but is down 22.8% year-to-date.
For more perspective on the conflict, listen to James Traub speak about it on Fresh Air.