What was the 1998 Russian market collapse called after Russia defaulted on domestic debt?

The 1998 Russian market collapse following Russia’s domestic-debt default is called the Russian financial crisis.

Russia faced falling commodity revenues, weak tax collection, political uncertainty, and the continuing effects of the Asian financial crisis. The government had relied heavily on short-term ruble-denominated treasury bills, known as GKO securities, to finance its budget. Investors became increasingly concerned that this borrowing structure could not continue.

On August 17, 1998, Russia devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic debt. The ruble lost much of its value, banks failed or struggled, and the Moscow stock market plunged. The crisis also contributed to the collapse of Long-Term Capital Management, whose positions were exposed to global market volatility.

The episode is sometimes reduced to a currency crisis, but it also involved sovereign default, banking distress, and a stock-market collapse. Rising oil prices and stronger fiscal conditions later helped Russia recover during the early 2000s.