What was the name of the 1998 Russian financial crisis that caused a stock-market collapse?

The 1998 Russian financial crisis caused a severe collapse in Russia’s stock market.

Russia devalued the ruble and defaulted on domestic ruble-denominated debt on 17 August 1998. The government also declared a temporary moratorium on some foreign debt payments. These steps followed weak tax collection, large fiscal deficits, falling commodity prices, and the financial shock associated with the Asian crisis.

Russian financial markets reacted violently. The ruble lost much of its value, banks failed or became insolvent, and the stock market suffered a dramatic decline. The crisis also damaged international investors and contributed to the pressure that helped bring down the highly leveraged hedge fund Long-Term Capital Management in the United States.

The event is sometimes described simply as a ruble crisis, but the broader crisis included sovereign default, currency devaluation, banking distress, and a stock-market collapse. Russia’s economy later recovered as oil prices and domestic conditions improved.