What 1998 crash followed Russia’s government default and the collapse of the ruble?

The 1998 crash following Russia’s default and ruble collapse was the Russian financial crisis.

Russia faced falling commodity prices, weak tax collection, political uncertainty, and heavy government borrowing. On August 17, 1998, the government devalued the ruble, defaulted on some domestic debt, and declared a moratorium on certain foreign debts. The currency then lost much of its value, damaging banks and businesses with foreign-currency obligations.

The crisis affected international markets because investors were already wary after the Asian financial crisis. The failure of the highly leveraged hedge fund Long-Term Capital Management later required a coordinated private-sector rescue, reflecting fears that disorderly losses could spread through global financial institutions.

Russia eventually benefited from higher oil prices and a weaker ruble, which supported exports and domestic production. The event is not the same as the 1997 Asian crisis, although the two crises were connected through investor confidence and international capital flows.