Which 1998 financial crisis caused Russia's stock market to plunge and its government to default on domestic debt?

The 1998 Russian financial crisis caused a stock-market plunge and a Russian government default on domestic debt.

Russia faced falling commodity prices, weak tax collection, political instability, and heavy reliance on short-term government securities. Investors became increasingly doubtful that the government could maintain the ruble’s exchange-rate arrangement or continue servicing its obligations.

On August 17, 1998, Russia devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic debt. The crisis damaged banks and businesses and spread financial stress beyond Russia. The Moscow Times Index and other Russian market measures recorded severe losses.

The event is sometimes grouped with the 1997 Asian financial crisis because the crises occurred close together and international investors reassessed emerging markets. They were not identical: Russia’s default and ruble devaluation had their own domestic fiscal and political causes.