Which 1998 Russian event followed a ruble devaluation and a sovereign debt default, rattling global markets?

The Russian financial crisis followed Russia’s ruble devaluation and sovereign debt default in 1998.

On August 17, 1998, the Russian government and central bank widened the ruble’s trading band, announced a devaluation, and suspended payments on some domestic debt. The crisis reflected weak tax collection, falling commodity prices, political instability, and the financial strain that followed the 1997 Asian financial crisis.

Russian market turmoil spread through international finance. Long-Term Capital Management, a large U.S. hedge fund, suffered severe losses because of its positions in Russian and other markets; a private-sector rescue was arranged in September 1998. The episode is sometimes described simply as the Russian default, but the broader term Russian financial crisis covers the currency, debt, banking, and market collapse.