What term describes the 1998 Russian default and ruble collapse that shook global markets?

The 1998 Russian default and ruble collapse are known as the Russian financial crisis.

Russia had accumulated substantial short-term debt while facing weak tax collection, low commodity prices, and political uncertainty. On 17 August 1998, the government and central bank devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic ruble debt.

The ruble lost much of its value, inflation surged, and Russian banks faced severe stress. The crisis also affected international investors. The hedge fund Long-Term Capital Management suffered major losses, and the Federal Reserve helped arrange a private-sector rescue because officials feared broader financial instability.

The Russian crisis is distinct from the Asian financial crisis of 1997–1998, although the two were connected through global investor confidence. It also differs from the 1994 Mexican peso crisis, which centered on Mexico’s exchange-rate and debt problems.