Cody Glass from the Portland Winterhawks opened the scoring 2:20 into the game, but that was all the offence that Canada could muster on New Year’s Eve.
Grigori Denisenko tied the game up for Russia only 3:01 later and Pavel Shen scored the game-winner with 11 minutes to play in the third period to give Russia a 2-1 win over Canada in the round-robin finale on Monday night.
The loss is costly for Canada as it drops them into second place in Group A and lines them up against Finland in the quarterfinals on Wednesday.
Moose Jaw Warriors captain Josh Brook was held off the score sheet in the loss for Canada, while Michael DiPietro made 23 saves in goal for Canada.
Team Canada will meet Finland at 5:30 p.m. at Rogers Arena in one of four quarter-final games on Wednesday. In other action, Sweden goes up against Switzerland at 3 p.m., the United States takes on the Czech Republic at 7 p.m. and Russia battles Slovakia at 9:30 p.m.