Which 1998 crisis caused Russia's stock market to collapse after it defaulted on domestic debt?

The 1998 crisis that caused Russia’s stock market to collapse after its domestic-debt default was the Russian financial crisis.

Russia faced falling commodity prices, weak tax collection, heavy government borrowing, and pressure on the ruble during the late 1990s. On 17 August 1998, the government devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic ruble-denominated debt. The announcement triggered a severe loss of confidence.

Russian equities plunged, banks failed or became insolvent, and the ruble lost much of its value. The crisis also affected international investors and contributed to the collapse of Long-Term Capital Management, a highly leveraged U.S. hedge fund, although that fund’s difficulties had several causes.

The episode is sometimes mistakenly described as only a currency crisis. It combined a sovereign debt default, banking turmoil, exchange-rate collapse, and a stock-market crash. Russia later benefited from higher oil prices and economic reforms, but the 1998 shock remained a defining event in its post-Soviet financial history.