Canada’s Vast Resources Have Made It the World’s Russia Alternative – The Motley Fool

They're two of the world's largest countries by land area, with harsh winter landscapes bordered by three oceans. They're rich in oil, potash, uranium, and nickel. But only one has the delicious comfort food poutine, while the other is stuck with Vladimir Poutine (as his name is spelled in French, Qubcois or otherwise).

Canada, the US' resource-rich neighbor, has turned into a favorite destination for countries and companies around the world looking to replace Russian resources.

Russia's sanction pains have turned into maple leaf gains in a matter of weeks due to the two countries' strikingly similar commodity baskets. Before invading Ukraine, Russia provided about 10% of the global oil supply. Canada has the fourth-largest oil reserves in the world. Roughly 30% of the global potash supply has been removed from markets because Russian and Belarus producers can't export. Canada has the world's largest potash reserves, at 1.1 billion tonnes.

The demand flowing in for Canadian resources has sent the S&P/TSX Index, Canada's benchmark, up 3.5% this year, while the S&P 500 has struggled against a backdrop of war and inflation, falling 4.6%. Canadian producers are rushing to get supplies out as fast as a sprinting moose (they're frighteningly quick):

Cash for Gas: "You have an economy that's basically at full employment ... and you have the backing of the commodity-based economy, so you'll have cash flows coming in," Earl Davis, the head of fixed income at the Bank of Montreal, told the Financial Post.

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Canada's Vast Resources Have Made It the World's Russia Alternative - The Motley Fool