Which 1998 Russian financial crisis event caused the ruble to be devalued and government debt to be restructured?

The 1998 Russian financial crisis event that caused the ruble to be devalued and government debt to be restructured was the Russian government default.

In August 1998, Russia devalued the ruble, declared a temporary moratorium on some foreign debt payments, and restructured domestic government debt. The announcement shocked international investors and caused severe losses in Russian shares, bonds, and currency markets.

Falling oil and commodity prices reduced government revenue, while weak tax collection, political uncertainty, and heavy reliance on short-term government securities made the financial system vulnerable. The crisis also contributed to the collapse of Long-Term Capital Management, whose positions threatened wider market disruption.

The Russian episode is often called the 1998 Russian financial crisis rather than simply a stock-market crash because currency, sovereign debt, banking, and equity markets failed together. The ruble later stabilized after a large depreciation and changes in economic conditions.